Will People Continue to Buy GM Cars?

No matter the resolution to the current state of the auto industry, the impact of a bailout on car buying behavior is much debated. Clearly people are concerned based on the traffic to gmfactsandfiction.com. With nearly 180,000 unique visitors in November; a 3000%+ increase over October.

How are people finding out about this site? In the chart below we can see that 3 of the top 10 sites referring people to gmfactsandfiction.com are GM brands.

Furthermore, at number 10 is YouTube with the below video.

But how will it impact vehicle sales? See a great piece of market insight from our cousins at TNS who recently survey consumers on purchase intent. The TNS survey showed that in either scenario (Government aid or bankruptcy) vehicle sales are likely to be impacted negatively. Bankruptcy, however, the worse of the two, could potentially cost the industry $50 billion in sales.

So will people buy GM cars? The facts show that it really depends on the bailout – either way hold your breath.

Comments

[a. palmer jr.:]

I don't think people are going to rush down to GM lots, or any other for that matter, until they/we actually need a car. Given the economy that we are faced with, unemployment, etc. it would be foolish for us to buy as we did in the earlier years. GM, Toyota, and others probably should just scale back their production instead of whining that they can't sell all of the 100 million gas guzzler cars they built last year. Toyota had their chance with me last year, but were unwilling to accept a reasonable offer from me (wouldn't go any less than sticker price) and offered me a pitiful amount for my good condition 2000 GM auto. They'll not get that chance again!!

2008 Dec 23 11:23 AM