Buyers Still Heading For GM Cars, Trucks Despite Bankruptcy
17 Juni 2009 - 11:20PM
Dow Jones News
Car buyers appear undaunted by General Motors Corp.'s (GMGMQ)
bankruptcy, assuaging one of the auto maker's biggest fears heading
into Chapter 11 protection.
Early signs point to stable demand for GM cars and trucks since
it filed for Chapter 11 protection on June 1.
GM Chief Executive Fritz Henderson on Wednesday said June retail
sales are tracking higher than May.
"June sales are moving along just fine," Henderson told
reporters at a summit in Detroit. Sales to rental and other fleets
are down from last month, he said. "We're very gratified for the
support of dealers and customers that we've received through
this."
Meantime, AutoNation Inc. (AN), the nation's largest auto
retailer, reported that showroom traffic at GM dealerships has held
steady since the auto maker entered court as part of a
government-mandated restructuring.
Traffic at AutoNation's GM stores has been virtually unchanged
from the week prior to the company's filing and is actually
tracking higher than it has been in the last two months, according
to the company's data.
GM initially feared that consumers would flee if it filed for
bankruptcy. But the U.S. government, keeping GM alive with cash
infusions, promised to back warranties on GM vehicles in a move to
reassure consumers. Additionally, the company and government laid
out a plan in which GM would emerge from Chapter 11 in 60 to 90
days.
Henderson said Wednesday the court proceedings were "progressing
according to plan" and that GM could be out before the end of
August.
A true test of GM sales won't come until the end of June when
the bulk of sales for the month are traditionally made.
Chrysler Group LLC, which emerged from bankruptcy last week
after about six weeks, saw a 47% sales decline in May that was
steeper than the industry average.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com