Bankruptcies Could Boost US Car Sales

Restructuring could convince consumers to take a chance, say marketers
By Ambreen Ali,  Newser User
Posted Mar 2, 2009 2:34 AM CST
A sign at a General Motors car dealership looms high in Andover, Mass. A bankruptcy could get consumers buying GM and Chrysler cars again, marketers say.   (AP Photo/Elise Amendola)
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(Newser) – Contrary to what GM and Chrysler contend, bankruptcies could actually end up boosting their sales. Customers who backed away from the brands amid uncertainty may return once the future is known—even if it's one that entails Chapter 11, marketers tell Advertising Age. Case in point: Studebaker lasted 30 years after it filed for Depression-era bankruptcy protection.

Like the ads that then proclaimed "Studebaker carries on," the Detroit automakers could pitch bankruptcy as a new beginning, a chance to tout "restructuring for the next century," suggests a consultant. The now extinct car company also boasted of its efforts to keep jobs, winning public brownie points.