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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
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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.

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.
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)
The automakers could spin the bankruptcy as a chance for consumers to buy a leaner, meaner car, consultants say.
The automakers could spin the bankruptcy as a chance for consumers to buy a "leaner, meaner" car, consultants say.   (AP Photo/Aijaz Rahi)
A Chrysler Jeep Commander rests on a hauler at a holding lot at the Jefferson North Assembly Plant in Detroit. Sales have slowed, but could rise after a bankruptcy, according to some marketers.
A Chrysler Jeep Commander rests on a hauler at a holding lot at the Jefferson North Assembly Plant in Detroit. Sales have slowed, but could rise after a bankruptcy, according to some marketers.   (AP Photo/Carlos Osorio)
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COMMENTS
Showing 2 of 2 comments
nick
Mar 2, 2009 6:06 AM CST
Or, then again ... it might not.
Mjoh3
Mar 1, 2009 7:35 PM CST
It will certainly boost the sales of Japanese cars

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Money • Media

 
Chrysler • advertising • bankruptcy • General Motors • Detroit • US automakers

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