From the Akron Beacon Journal

DETROIT -- Nearly three-quarters of Americans wouldn't buy a car from a bankrupt company, according to a recent survey.

In a nationwide survey by the Cincinnati-based research firm Directions Research Inc., 26 percent of respondents said they would purchase or lease a new car from a manufacturer that had declared bankruptcy.

General Motors Corp. lost nearly $5 billion in its North American automotive business in the first nine months of 2005, and speculation has mounted among investors that the automaker may eventually be forced to file for Chapter 11 protection.

GM recently announced it would close 12 North American manufacturing plants as part of a plan to cut $7 billion in costs per year.

Company executives have denied they consider bankruptcy an option. They have noted that buying a car is a long-term commitment, and buyers will be put off if the manufacturer is bankrupt or considering bankruptcy.

The survey data indicate that consumer attitudes toward a bankrupt automaker would differ significantly from those toward airlines that have filed for Chapter 11.

Copyright ©2005 Akron Beacon Journal. All Rights Reserved.

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