Argument: Consumers would not buy cars from bankrupted automakers

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Daniel Gross. “In Defense of Detroit”. Newsweek. 13 Nov. 2008 – “General Motors wouldn’t be a typical bankruptcy. GM’s management argues that the very act of filing for bankruptcy eliminate the possibility of recovery, since people would be reluctant to purchase expensive, long-lived assets (cars and trucks) from a bankrupt entity.”

Greg Chaney, Manager, Chacon Autos, Dallas-based owners of eight automotive dealerships: “We would most likely see much less of a demand for their vehicles. We would be wary of selling or buying any vehicles from that manufacturer, and we would most likely shift much of our inventory to the more stable companies and to the imports.” (Inc. Magazine, November 2008).[1]