GM Situation in US getting worse

[Ohio XB]

Originally Posted by SSbaby

The airline carriers post 9/11 went bankrupt and restructured... to the point where they are financially viable today.

There should be a clear indication that the car industry as a whole is undergoing a substantial revamp. There is still hope for GM providing the US govt could reassure consumers that cars made in Detroit will continue to be backed with warranty, service and spare parts.

These are just my opinions, not industry speculation.

This comparison has been made many times but the context has to be illustrated too.


When you buy an airline ticket for $150 or $1,500 you get on the plane, fly for a few hours, get off and go on your way. Maybe a week later you are going to do it again to get back home, then you go back to work and on with your daily life. If they are in Chapter 11 bankruptcy but still operating you only engage them for a few hours of service anyways. If they do not emerge from bankruptcy, oh well, you will most likely be home and see it on the news.


When you buy a car for $14,000 or $37,000 you are expecting the manufacturer to warrantee the car for various durations for the next 3 to 5 years and for a specific amount of mileage, whether 36,000 or 75,000 miles. It is an ongoing relationship for at least several of the following years between the customer and the company that the purchase is made from. If they are in bankruptcy and they don't emerge from it then you lose the warrantee on your car. Also, if they are in bankruptcy where is the company going to be cutting money from and how will that affect the quality of the car?

An airline either flies or it doesn't. Success or failure, and failure is very very rare. A car has a higher incidence of failure, no matter who made it, and we are conditioned to have a warrantee to be there if it does, or else the car can cost us money this month, in a few more months, and for the next couple years.


Basically there is a lot more of an investment in buying a car than a plane ticket and the relationship is also much much longer.


Steve