Bankruptcy is looming, and hurting sales. The vultures are circling as dealers try to operate in a cloud of mystery whether their parent company will be in business. The following is from an Automotive News article:
Some customers have been offering [Dodge-Jeep dealer Jim Giddings] half the price of vehicles. When he refuses, Giddings says, “Customers say, ‘You’ll be selling soon for whatever you can get because you guys will be going under, going bankrupt.’ “
Those that have the cash (or at least the financing on their own) can make aggressive offers to dealers on the verge of collapse. If things don’t get better soon you can expect this to become more common.
I deeply suspect Obama will not let both Chrysler and GM fall. Once Chrysler is under foreign control with Fiat the public will be more against tax dollars saving them. But GM is huge. Obama won’t let them go under and lose all those votes in car making states. He needs GM to survive so he an get re-elected.
