It seems a logical conclusion – if a car company is going bankrupt in a very public way, you don’t want to buy one of their cars. After all, you expect a certain level of warranty and service, new parts, that sort of thing. All of which would be up in the air if the company disappeared 6 months after you make your purchase.
Retiring vice-chairman Bob Lutz, always as proponent of emotional cars, sees hope. For evidence, he points to the interest shown by members of the government's auto task force in the new Cadillac CTS coupe.
"It got an amazing amount of attention," Lutz said. "Which shows, it doesn't matter where you're employed or what you do, normal people get turned on by great cars."
Support for Lutz's argument comes from the sales analysts at Edmunds.com, who believe the effect of the bankruptcy stigma has been overstated. The analysts cited improved Chrysler sales figures for the month of May. "The Chrysler experience should be cause for some optimism that GM's experience will be similarly efficient," Edmunds.com said in a statement.
That may be true if GM dealers decide to sell off their inventory at fire-sale prices. Chrysler had been stuffing its channel for months, and dealers were desperate to rid themselves of unsold cars, some of which had been gathering dust for nearly a year.
Do you see any hope for GM?