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Would You Feel Confident Buying an American Car?

This article was written by in Consumer. 21 comments.


If you have not been aware of the recent news, General Motors and Chrysler have asked the government for more money, but the Obama administration is pushing back. The government’s task force has determined that the restructuring plans submitted by the companies in return for continued financial support are inadequate.

As a result, the Chairman and CEO of General Motors, Rick Wagoner, is resigning from his position and Chrysler is heading towards a possible merger with Fiat. With GM, the government will provide the company with the funds it needs to operate for sixty days. There is a possibility that General Motors will not survive in its current form two months from now. Chrysler, on the other hand, will only have thirty days to turn around a plan for moving forward.

Bankruptcy may be the answer for both companies. To prevent consumer trepidation about buying a car from a company that might not support its obligations like warranties and maintenance, the Treasury Department has stepped in. The government plans to back warranties on all GM and Chrysler vehicles purchased while the companies exist in their current state of collapse or restructuring.

If you typically buy cars from GM and Chrysler, would you be more or less inclined to purchase a vehicle right now? Are you confident your car will receive the support it needs from these companies or the government throughout its usable life?

You can read the full text of President Obama’s remarks today about General Motors and Chrysler here.

Published or updated March 30, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 8 comments… read them below or add one }

avatar Nate

I support Ford! They have not even asked for any government help.

Go Ford!!

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avatar tom

My wife’s family worked for GM and we’ve always bought GM cars with the employee discount, but as of late, I will not buy a GM car. All the companies are hurting, so there are deals everywhere. If GM pulls through and turns things around, when I am in the market in a few years, I will reconsider.

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avatar Bobby

While the warranty issue would be a minor concern, I would be more concerned about the availability of aftermarket parts for repairs that aren’t normal maintenance.

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avatar Matt SF

I trust them even less. Having government support only hurts their image as a viable, self sufficient company.

May as well change their name to Government Motors.

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avatar Atul

I just did buy a GM product a couple of weeks ago. The deals are too good to pass up and if you are planning on buying within a couple of years and have decent financial security, now is a good time. We need to support our American manufacturing companies who employ more people in our country, blue collar workers and white collar workers included. If we no longer make cars in our country, what else will we be manufacturing? There’s little left and you can’t have an economy based on service industry. Many services are not exportable so they cannot bring money from overseas into our economy. Manufactured goods are almost always exportable.

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avatar RJ Weiss

I wouldn’t buy GM right now.

However, I wouldn’t hesitate to purchase a Ford. I have had two Ford cars in the past with no problems.

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avatar MLR

Atul –

Basing what car is made in the USA on the company they come from is silly. That’s the basis behind globalization. A Chinese company may produce its goods in Vietnam and a Vietnamese company may produce its goods in Singapore.

Just as an American company, GM, produces some of its cars in Mexico while a Japanese company, Honda, produces some of its cars in America. Kinda kicks your argument to the curb, eh?

MLR

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avatar UH2L

MLR.

Your logic in no way kicks my argument to the curb. If you read my comment closely, I said white collar too. The Detroit 3 employ a lot more people in the U.S. not just to build cars but to design, engineer, market, and distribute them. Subsequently, their employees drive more commerce with respect to health care, restaurants/entertainment, legal services, real estate and so on. Also, if the supplier base for the Detroit 3 goes under, all the other transplant car companies here will be significantly affected, would probably have to shut down assembly. I hate to keep rehashing this article I wrote, but it makes all the points that I have to keep telling people about since the press and the general public have many misconceptions about the auto industry…

http://tinyurl.com/c5xy5l (goes to the article but with a much shorter link)

Atul

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