Should You Buy a Car From a Struggling Car Manufacturer?

I cannot imagine that executives of certain carwill be requested and approved by Congress and
companies, such as Chrysler, will like what I havethe president.
to say about them in this article. After all, whenIs my car company looking at other business
you're struggling for your very survival, havingoptions? One way that automakers plan on
someone tell you to look elsewhere for a newremaining around for the long haul is to reorganize
car isn't exactly supportive. Then again, far be ittheir operations. General Motors will be getting rid
from me to tell anyone what to do!of two brands - Saab and Hummer - while scaling
It is difficult not to single out a particular carback on Pontiac and, perhaps, Saturn. The
company as only a handful are in precariouscompany is still closing factories and laying off
shape, possibly facing bankruptcy followed byworkers to align production with demand, a good
liquidation. That bit of news doesn't bode well forcost saving move that could help. Chrysler is
buyers who could be stuck with a car that is noteeming up with Nissan to build a few models and
longer made, no longer supported, and may norecently announced a deal with Fiat which could
longer have a warranty. That thirty thousandbring several new models stateside as early as
dollar investment could suddenly be worthless, anext year.
loss that few consumers can afford to handle.Will my warranty be protected? Even if Chrysler
If you are looking to buy a new car this year andor General Motors were to fail, most analysts
are considering a model from an automaker goingbelieve that Congress would step in to at least
through severe financial difficulties, you may notguarantee warranties. This means that car values
be completely vulnerable. But, you need to dowould stabilize and dealers would be able to clear
some research (including keeping your eyes andtheir lots of inventory before shutting down.
ears open to the news) to see what the futureOwning a brand that is no longer produced may
holds for that company. Some questions to asknot sound appealing, but given the good buys sure
yourself include:to follow, it could be an attractive option for
Is my car company insolvent? If so, will federalsome people.
funds bail the company out and for how long?In all, these are difficult days for car
Both General Motors and Chrysler are goingmanufacturers as well as for consumers. If you
through an incredibly stressful financial time, butare risk adverse, then you'll take your hard
both have received some financial assistanceearned dollars elsewhere. If not, an excellent buy
from taxpayers in the form of low cost loans.awaits you as does much caution when making
The key for each company is whether thoseyour purchase decision.
funds will be enough or whether additional funds