Here’s a new survey guaranteed to have General Motors board members nervously gnashing their teeth: nearly three-quarters of Americans wouldn’t consider buying a new vehicle from a bankrupt company.
According to new findings released Friday from Directions Research Inc., just 26 percent of consumers surveyed would consider buying or leasing their next car from a company declaring Chapter 11. And while the evaluation didn’t break down the mitigating factors mentioned among those questioned, those with greater wealth were far more likely to consider taking a flyer with a fiscally troubled company: fully 32 percent of those in the $100k bracket would consider buying, yet only 20 percent earning under $25k/year would mull the risk.
Among the other findings by Directions Research Inc, 28 percent of those questioned would contemplate buying a vehicle from a Chinese concern, while only 15 percent would consider doing so if a car was Indian. Interestingly, in terms of quality, those surveyed felt that U.S. car manufacturers boasted the highest standards (35 percent), with Japan coming in second with (31 percent), and Germany registering a distant third (24 percent).
[Source: Dow Jones via Morningstar]