How would the bankruptcy of Chrysler affect its car sales?
Would dealer’s sell Chrysler for more money? Less money? Or would the bankruptcy not affect sales at all?
Tagged as: Bankruptcy · chrysler · money
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The bankruptcy will affect volume, that’s for sure. Buyers are going to be less likely to purchase a vehicle from a company that is under restructure.
That being said, Chrysler will still need to turn a profit in order to survive. They will indeed have to sell above cost to make any profit at all. The common theme on this forum seems to be: "They’ll chop prices like crazy because they’re going under". Not true on both issues. Filing for bankruptcy does not mean Chrysler is going under and shutting the doors. It also goes right back to what I mentioned earlier… they must turn a profit in order to survive. They must cut costs, reduce labor costs, etc in order to even think about a profit. It will either save them or just delay the inevitable. My personal opinion is that they are in too much hot water in order to survive.
I would expect the same incentives you see now. They still have to incent people to walk through the door.
The dealers would sell fewer cars for ALOT less money. They are already selling them for vitually nothing. That being said, generally they are terrible cars so they should be sold for nothing.