Big 3 bankruptcy wouldn't make shoppers avoid U.S. cars

ByABC News
December 16, 2008, 7:48 PM

DETROIT -- Contrary to comments by auto brass and Congress, buyers wouldn't shun products from a U.S. automaker that filed for bankruptcy, according to a USA TODAY/Gallup Poll.

General Motors CEO Rick Wagoner first brought up, in his November Senate testimony, the now oft-cited data that 80% of people would not buy a car from a company that filed. It's been a strong argument that Detroit needs government aid, not bankruptcy reorganization.

"It is one of the big contentions the auto industry has made, that people will not buy from a bankrupt company," says Aaron Bragman, an analyst at IHS Global Insight. "They have fought bankruptcy tooth and nail."

But the USA TODAY/Gallup Poll says otherwise. The survey of 1,008 adults Friday to Sunday found that 82% would at least consider a Detroit-brand vehicle. Of those, 67% would do so even if the company were in bankruptcy court. Other highlights:

30% said they would consider only U.S. brands vs. 15% who'd look only at foreign makes.

61% favor government aid for Detroit automakers, even if they dislike recent proposals.

57% think all three Detroit companies GM, Ford Motor and Chrysler will survive.

Bragman says bankruptcy might seem less frightening. "If people are becoming more familiar with bankruptcy there might be a slight change in how people are perceiving this."

Jack Nerad, market analyst for car-shopping site KBB.com, says concerns about warranties and parts still would dissuade buyers. "People will say they will consider a lot of things, but when it gets right down to actually putting their money on the line it narrows pretty significantly."