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Car Buyers Wouldn't Stand By Bankrupt Automakers
According to a study conducted by CNW Research, Chrysler would take the biggest hit among the US automakers.
July 18, 2008
As bankruptcy talk has swirled around the US automakers, there’s been plenty of speculation about what a Chapter 11 filing would do to car sales of the affected companies.
Well, one firm has tried to quantify the impact, and the numbers aren’t pretty.
According to a study conducted by CNW Research, Chrysler would take the biggest hit among the US automakers, with about 91% of those who intend to buy a new car within six months giving up on Chrysler brands for rivals, according to Reuters, which reported on the study. Close to 80% of car buyers said they would drop plans to buy a vehicle from GM or Ford if either filed for bankruptcy.
"Admitting defeat, as bankruptcy would do in the minds of consumers, sends shoppers other places," the research firm said in its report, according to Reuters. "There is no loyalty to the brand."
GM said last week it plans to cut $10 billion in costs over the next 18 months through job cuts and through other spending reductions, and will raise another $5 billion in cash but denied reports that a bankruptcy filing was in the works.
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