Clues from Chrysler: What's ahead for GM.(NEWS)(General Motors)

Automotive News, May, 2009 by Guilford, Dave

Byline: Dave Guilford

General Motors CEO Fritz Henderson generated global headlines last week when he conceded that bankruptcy is increasingly probable for GM.

But the prospect of a GM bankruptcy isn't as mysterious as it was two weeks ago. Chrysler LLC's Chapter 11 filing on April 30 shows the likely direction that a GM bankruptcy would take.

Here is how major issues facing dealers and suppliers are playing out in Chrysler's case.

Will consumers show up at dealerships?

At least initially, Chrysler's bankruptcy filing attracted shoppers. Edmunds.com reports that interest in Chrysler vehicles among Web shoppers with a "purchase intent spiked 12 percent after President Barack Obama announced the bankruptcy.

...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.