Friday, December 19, 2008

A glimmer of hope

White House considers 'orderly' bankruptcy for auto companies

A very small glimmer of hope.

But alas...

The White House mention of bankruptcy, orderly or otherwise, was not welcomed by many in the industry. There is widespread fear potential buyers will abandon any automaker that files for bankruptcy protection due to worries about vehicle resale values, warranty support and parts availability.

"Bankruptcy, structured or not, would destroy demand for that company's vehicles and put dealers out of business," said Annette Sykora, chairman of the National Automobile Dealers Association.


Big 3 bankruptcy wouldn't make shoppers avoid U.S. cars

Next excuse please.

Of course the real reason they want a bailout instead is because chapter 11 would allow renegotiation of UAW contracts and shedding of some useless dealerships.

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