How Might Bankruptcy Affect Auto Sales?
It is well-documented that U.S. auto sales have slowed dramatically in the past year, and it’s not clear when or if auto sales will pick up. The new Gallup Poll finds Americans are, for the most part, not currently shopping for new cars. Only 20% say they are “extremely,” “very,” or “somewhat likely” to “buy a new car from a dealer within the next 12 months,” including just 7% who are extremely or very likely to do so. Generally speaking, Americans are somewhat reluctant to buy a new car from a bankrupt automaker — 49% say the fact that a car company has declared bankruptcy makes them less likely to buy a car from that manufacturer. Most of the rest, 44%, say it makes no difference to their decision, while 4% say they would be more likely to buy from a bankrupt automaker. These attitudes are essentially the same among the one in five Americans who are at least somewhat likely to buy a car in the next 12 months. Implications The Bush and Obama administrations decided that General Motor
