80% Of Consumers Won't Buy A Car From A Company That Files Bankruptcy

Vociferous southern Senators like Richard Shelby and Bob Corker made it clear during the auto industry hearings yesterday that they would very much like to see Detroit automakers go bankrupt, without mentioning how it would benefit the heavily subsidized foreign automakers in their right-to-work states.

As I watched cable news following the hearings, people appeared preaching Corker's gospel of Chapter 11 as a way to make them "financially viable," including Robert Reich (video). Nobody seemed to think that consumers will have any problem buying cars from a company that has filed for bankruptcy.

MSNBC analyst Chrystia Freeman: "I think the carmakers are using a lot of scare tactics, trying to play chicken with the politicians. We heard it with Phil Lebeau actually -- 'oh, well no one will buy cars from a company that's in bankruptcy.' I don't think that's proven."

Really?

A recent study from automotive market research firm CNW surveyed 6000 people intending to buy a new car within six months, and discovered that more than 80 percent of them would switch brands if the vehicle they wanted came from an automaker that went bankrupt. Breaking it down by company, Americans were more likely to abandon domestic automakers than foreign ones, with Chrysler faring the worst -- a full 91 percent of buyers wouldn't take home an Auburn Hills product if the company went bankrupt. Ford and GM didn't do much better, with 80 percent of those surveyed saying they would jump ship if things went south.

Freeman went on to say that foreign automakers are doing quite well in the US, actually, it's only the domestic automakers who can't be competitive because of their "legacy costs." In fact, as Marcy Wheeler notes, sales are down across the board -- and Ford's are holding better than those of Toyota, Honda, Nissan, Hyundai, and Kia. In fact, Ford doesn't require a bridge loan, and isn't asking for one -- they may have enough cash to weather the storm, but are requesting a line of credit as a backstop should things get worse. Common sense would inform most people that if this turns out to be the case, foreign automakers will not be immune, either.

The fact that the Detroit automakers are in a cash flow crunch, and that getting rid of legacy costs would do almost nothing to ameliorate that, doesn't seem to have occurred to her.

Did she pick up Richard Shelby's talking points in the green room by accident?

As former Wall Street GM analyst Ron Glanz said recently, an American made car is already selling for $4000 less than the exact same car made by a Japanese manufacturer would, expressly because of bad product legacy and fear that the manufacturer will go bankrupt. It's a PR problem that can't be overcome simply by waving your arms and shouting "no, no, really, Chapter 11 bankruptcy. . . it's just financial reorganization."

The danger here is, if they're wrong -- and all the evidence is that these "experts" are terribly, terribly wrong -- they're dooming US automakers to a hole they may never be able to dig themselves out of.

One in ten jobs in the US is directly tied to the auto industry. The stakes here are high. It shouldn't be too much to ask that people do a little research before climbing on cable news an making outrageous and demonstrably false claims.

Read More:

Should the Government Bail Out the Big Three U.S. Automakers? HuffPost Bloggers Weigh In

Jane Hamsher blogs at firedoglake.com

Follow Jane Hamsher on Twitter: www.twitter.com/janehamsher

Comments

[jerrypl]

Jane, what do you expect from a bunch of congressional and corporate failures. Few have their two feet on the ground. One must remember that parts suppliers will get hit in a big way if the car companies go in Chapter 11. And if they do, they might not be able to get funds to restructure. There is a credit freeze. Who would loan to them if there is a chance that they might fold up completely?

Anyone thinking of buying a new car if they don't need one, is crazy!!! The deep recession is only a month away, and 2009 will be horrible. For anyone to waste their cash is nuts. This will last a very, very long time. Read Vanity Fair's article, "Profiles in Panic". The uber-rich are taking a bath, too.

Recessions don't need government intervention to come out of it. Depressions do!!!

http://eye-on-washington.blogspot.com

[adaugeo]

80% of the Car Buying Market would not buy a GM before Bankruptcy, 95% wouldn't buy a GM last month of PANHANDLING in Washington.

How can this "Bankruptcy is certain devastation" DECEPTION be perpetrated? Chrysler has done it, so arguments that it CANT BE DONE seem pointless. One could argue that G.M. should have become Cadillac and Saturn MANY years ago, a strategy used by every SUCCESSFUL automobile manufacturer around the globe.

REORGANIZE the Bad, PAY the Suppliers what they are owed, and start shutting down G.M. DIVISIONS until expected production matches the 50% demand decline that is more likely than the fantasy math presented by Wagner last week. -

Dodd is right, Time for CHANGE in the G.M. Executive Offices...and forget Barney Frank's HAMMOCK for the UAW - We already have a Leaky TARP.

[idealisticNM]

pt. 2:

The Big 3 have spent years telling us that we need to buy the biggest, bestest, shiniest cars out there, and have created this "need". Many people feel that they must have that biggest and newest SUV to compete and to look good. Oh boo hoo...what did we do in the old days before we had all that ? OK, I could see someone in Alaska or North Dakota needing a pickup to haul farm stuff. But owning an SUV or a massive pickup in a crowded city is just plain misguided.

Argh ! I'm sorry to vent. I just think (IMO) that a deeper problem needs to be addressed: why can't people be happy with something less conspicuous, less gas-guzzling, something that gets them to work and back, and costs almost nothing to maintain ? What exactly is America's love affair with SUVs all about ??

[Viper]

Yes the Lexus, Infinity, Honda' upscale models, BMWs, Mercedes, Toyotas and Nissan big trucks and SUVs, Volvos, Rolls, Bently, Jags, Audi, Land Roover and etc.... were all caused by the brain washing of Detroits Big 3.

Regards

[KillTheMessenger]

Caused? No.

Enabled? Yes.

[BuckeyeGal]

I remember years ago (early 90s ?) that in media reporting much was made of the fact that when a compact car and an SUV or light truck collided, that the occupants of the car were far more badly injured or ki//ed. The NHTSA did a study on it and it was on all the nightly news shows. Many people, the 'Safety Moms,' bought them so they would feel safer if a collision should occur.

[KillTheMessenger]

One more proof that Americans will buy into anything, if it is "substantiated" with a good portion of fear. Worked to sell the war in Iraq, too.

:-)

[adaugeo]

What a coincidence - 80% would not buy a G.M. out of Bankruptcy.

and 95% aren't buying from PANHANDLERS.

[idealisticNM]

pt. 1

IMHO, something that will also have to be re-evaluated is many Americans' practice of buying that they cannot afford. I have learned a lot from reading this spirited and informative discussion. But much of this is way above my payscale ! Why do people buy cars that they can't afford ?

My husband & I both have old used cars that we paid (little) cash for--he, an '89 Ford Ranger, me, a '96 Nissan Sentra. We love our cars. A few bucks now and then to take them to Jiffy Lube, a couple bucks to buy windshield fluid...and that's it ! No repairs have ever been needed.That's awesome, and I don't understand why others don't feel the same way. Why would someone take out some massive stupid loan to buy some massive stupid gaz-guzzling SUV ? Our consumer mentality has gotten way out of hand.

[Viper]

If people dont buy new cars... then there is no used market for you to buy from.... Duh...

Regards

[KillTheMessenger]

If people around you don't buy new cars, you live in Cuba.

[jferguson]

When I had cars ( I don't now), I bought used cars with 50k miles on them and then drove them until they had 160-200k. It's amazing how little this cost and it's also testament to how really good cars are now compared to when I was a kid ('50s)

[Viper]

Maybe because they have 4 kids, do family vacations and camping, need to tow a boat or a camper, do construction work and need to haul plywood... Take six kids to little league games, Have a yard and need to haul bags of mulch/fertilzer, take the lownmower to the shop...

They are handy. Pls note Mercury now has a full size SUV Hybrid that gets a real 32 MPG... It seems the correct answer is make them more efficient instead of you trying to convert others needs to what you think they should be. The SUV is just the station wagon of the 60s with much better mileage.

Regards

[BobinPgh]

People bought bulky, frumpy station wagons back then, but I have to think even their mileage was better because they were 2 wheel drive and did not have the weight and drag of the 4 wheel drive machinery. Also, they were not very cool and so were not driven by teens much. I know, I was there. Do you ever see the look on Eric Forman' face when he drives the Vista Cruiser? That probably helped keep them off the road except when necessary.

[KillTheMessenger]

Maybe most people who have an SUV commute to work in it... all by themselves.

And maybe that's why Americans had to spend $500 billion on oil imports this year.

I am just saying... maybe.

[FreedomBeforeDemocracy]

You are correct that there is bigger issue of people buying what they are able to afford. Of course, the current financial "bailouts" teach us that it is better to over borrow (at which point you could become a beneficiary) than to under borrow (at which point you'll become a benefactor). Our government has introduced this sort of "moral hazard" quite will over the last 80 years. It is only getting worse.
When it comes to reasons people buy these new vehicles, however, that is there decision. I am okay with them using whatever reason they wish, as long as they don't expect me to subsidize.

[melpol]

It is impossible for the U.S. auto industry to compete with Indias new throw away car. For those that are willing to compromise safety. The DISCO RACER 4 door six cylinder sedan $1999 + shipping charges. It is made to last 35000 miles.

[Viper]

Or ships built , clothess made, TVs, stereos, computers, toasters, washer, dryers , refridgerators, tech support calls or anything else unless you are willing to work for a 1.50 a day and live in a shack and drink bad water and breath dirty air.

Thats the problem... For Detroit and why all other economies protect their major industries and home markets from such unfair compettiion. We dont and thus our STD of living will drift downward until we equalize with 3rd world countries.

Regards

[Viper]

Its very possible if you want to work for under $1.50 per day, drink dirty water, breath dirty air and live in rubble with 4 other families....

Regards

[FreedomBeforeDemocracy]

Shouldn't these people have the right to compete as well. You belittle their $1.50/day and seem to prefer $0/day. Businesses go into these under developed countries in order to get their cheaper labor. Many parties benefit from this arrangement, including the business, the labor, and the consumer.
As more and more business see this as viable, more and more will attempt to take advantage of this cheap labor. That will drive up the demand, and hence, the wages for this labor.
Many people look at China and say, "Look how much poverty they have", instead of going back 30 years and saying "Look how much poverty they had."
Imho, one of the best hopes for Africa is to make it viable for companies to use their labor. Then, like China (and now India) they can start their climb out of poverty.
You might also note that contrary to popular "progressive" belief, as our trade has become freer, our standard of living has gotten better, not worse. Although, it's true that some industries suffer because of the labor shift.

[KillTheMessenger]

It is not necessary to compete against them. The Disco Racer will never be sold in the US. Neither will the Flying Saucer, the Happy Dancer, the Naughty Kiss or the Maharaja Mobil.

[jferguson]

Melpol said The DISCO RACER 4 door six cylinder sedan $1999 + shipping charges. It is made to last 35000 miles."

What a great price! If it was ok for my 1961 VW whose MTBVJ was about 35k miles and was devoid of safety gear - except seat belts on mine, maybe it would be ok today.

MTBVJ is mean time between valve jobs.

[FreedomBeforeDemocracy]

Why does everyone assume that those not willing to buy a car from a company in chapter 11 bankruptcy would be willing to buy a car from an insolvent company that can only get special politically based loans from the government? The latter is a worse state of financial affairs. Is it because of the word bankruptcy and ignorance of what is actually happening? 80% of the people may be unwilling to buy from a company in chapter 11, but 90% of those people will never realize the companies have filed for chapter 11 (my estimate).

[jferguson]

One might ask, what percentage of that 80% actually understands what a Chapter 11 restructuring is. I agree with you FBD.

[BobinPgh]

But I think some people would buy from a bankrupt GM if there are bargains. I think some people are just waiting for the prices to come down before buying.

[Viper]

You are aware that every car maker in the world especially in Japan gets Poltically zero interest free loans and paid for research and development, paid for healthcare and a protected home market.

Regards

[FreedomBeforeDemocracy]

Do you think that makes it right? Do you think that makes it advantageous? A protected home market "protects" a minority of those involved in production. It does so at the expense of the majority doing the consumption. Paid for health care most likely reduces costs, since it most definitely reduces results. The interest free loans , as well as the "paid for" research and development goes the politically well-connected. Are you advocating this system?
What in the constitution do you believe allows the federal government to take my resources and give it companies they do as "economically vital"? The General Welfare Clause? No, that is the very thing that prohibits this sort of special interest favor. Again, you are free to donate as much of your resources as you like to the big 3. Why must you insist on coercing me into doing the same?

[citizensrus]

In my experience, unless you are going to pay cash and in full, 100% of consumers will not get financing to buy ANYTHING from a bankrupt company. Why would a bank finance your loan from Going Under Now Automakers? Why would the company finance your loan from we just filed bankruptcy auto sales?

[KillTheMessenger]

What matters to the bank is your credit report, not the financial state of the car company. They will come after you if you miss a payment, not the maker of the car you bought. But maybe I just didn't understand your argument.

[jferguson]

I apologize if I missed it, but has a "scrappage program" been suggested? They have one in Ireland right now and have employed them in the past both to get the economy moving and get "obsolete" cars off the road. The idea is that the government pays an incentive for you to trade in your old car on a new one, and then the old one is destroyed.

For the present situation here in the US, it might involve the government "giving" significant cash to people who trade in "Gas Guzzlers" for new US-built economy cars. The size of the credit might vary by the differential in fuel consumption between the vehicle traded in and the new car.

The trade-ins would all be scrapped - never to be driven again - anywhere.

This scheme would clearly help get Detroit moving again, although we might then find out that their plants are not set up to produce the numbers of more fuel-efficient cars at the rate that a program like this would encourage.

If they could, this might be one of the quickest methods we could use to get the economy moving again while improving our green-ness.

The incentives would have to be big, maybe $10k per car where the mpg difference between trade-in and new car was greatest, but at least the money would pass across main street.

[Viper]

Detroit has the higher average MGP fleet and the most Hybrids.


Toyota's flleet gets 2 less miles per gallon than it did 20 years ago.

Regards

[jferguson]

Hi V*,
I was worrying about whether Detroit has the capacity to build lots and lots of fuel-efficient cars. I don't think they do. My assumption was that greater fuel efficiency would come with some size reduction and that their lines are not all set up to build little cars and might take over a year to reconfigure.

I still think the best gas saver, though, is to ask yourself before every trip, "Is this trip really necessary?"

[KillTheMessenger]

That's nonsense put out by the car companies. There are only two truly efficient vehicles in the US market: the Prius and the Honda Civic Hybrid. Everything else is just marketing make belief.

[FreedomBeforeDemocracy]

So trying to make our fleet even more fuel efficient doesn't sound like such a good idea.

[Jp2]

I can't understand the hatred expressed in this blog for the U.A.W.What exactly have they done except negotiate a wage and benifit package(pe­nsion,heal­thcare) for their members Are they perfect,No.Fifty years ago most big companies provide pensions for their workers.It's only been the last 15-20 years that companies switched to 401k.You can see how well thats going the last two years.With the new wage agreement the U.A.W. negotiated 14.00 an hour for new hires with no pension it will be the first time in 60-70 year that a new worker will have a hard time supporting a family.For those bashing G.M. Ford and Chrisler ,for over a hundred years they have provided millions of AMERICAN families a middleclass existence.Have you heard a autoworker complain about state and local taxes he pays to help fund state and local employees pensions and healthcare.Have you heard him complain about the federal taxes he pays to fund federal employees pension and healthcare benifits.Especially the hypocrites in congress(S­helby,Cork­er ect.).Have you heard one word from congress about getting rid of their pension and healthcare and reducing their wages 50%.

[Viper]

Because for years people have heard BS about how much they make. GM plants $28 per hour. Toyota plants $25 per hour, and thats with a much younger workforce... so their cost will go up. GM avg pension 31K per year. Wow!

Its amazing that suddenly employers providing healthcare and paying a low end middleclass wage is bad! That attitude clearly states that America is well on its way to becoming a 3rd world nation.

Regards

[KillTheMessenger]

It stands to reason that foreign car companies can build a similar car with a lot smaller total workforce... and that would account for the real difference.

But there could be a much more trivial reason behind the demise of the US automobile industry... their sales strategy.

Toyota and Honda advertise 1.8% APR (and no money back), Ford etc. give deals with up to $5000 in cash back. And that's not a new thing... US car makers have been giving their cars away under cost for years to make volume.

[adaugeo]

The Loan that will never be repaid by Incompetent Executives, to support workers that don't have customers has nothing to do with hate red of the U.A.W. - It defies the Circle of Life for Business Entities - Allowing the unfit Corporations to take their natural course is without TAX dollars...a Choice.

[RhondaSTL]

I have a 2006 GM vehicle and I don't think I would have any less faith in my warranty being honored if GM went into a pre-packaged bankruptcy. I'm sure that the guarantee of warranties would be part of the package. I don't have a lot of faith in my warranty right now with GM begging for money on nothing but a promise that NOW they know how to be viable.

I've never bought anything but GM autos, but if I was in the market right now I would have to seriously reconsider that loyalty.

[FreedomBeforeDemocracy]

Well said. Maybe if Americans had (or were given credit for having) half the brains you do, chapter 11 would be seen as the preferable option. Instead, most headlines just use the word "bankruptcy", so people go back to their Monopoly definitions and think, "Oh, that means you no longer exist."

[schatsie]

let me say about the southern states.. they are taking out more federal dollars than they put in and PART OF THOSE FEDERAL dollars are going to build the auto factories, to offset the fact that they do not pay property taxes or any other taxes in those states....

YOU REALLY DO NOT WANT TO KNOW about the handouts these corporations are getting from the states where they are... IF they are so much better at running these companies than the government, THEN by GOD, they should be paying their fair share INSTEAD THEY ARE STIICKING IT TO THE WORKING CLASS TAXpayers....

[Coattails]

I used to own a Mazda, which was a pretty stable car.

I sold it and replaced it with a Ford. Boy oh Boy, I have spent enough maintaining my current car to buy my old car back at this point.

It seems that Ford is one of the better off companies right now, or at least in the top 2. I worry how much the cost of maintaining a car that is not under warranty from a bankrupt company would be though. Things are already ridiculously expensive (even after-market parts).

I would honestly consider a new vehicle with a good business model that has a good rating on the market (which reflects investor confidence), and has a warranty and the features I want.

Unfortunately, I don't know if any of the BIg 3 will be around in 6 months let alone 5 years. That will make me consider a new car purchase.

[therealredstateblues]

Mazda is ownd by Ford. most Mazda models roll down the same assembly lines as Fords. They share many common components. Ford and mazda have shared technology for almost 30 years

I drive a ford built Ranger based mazda B series tuck - its twelve years old and not a thing wrong with - a darn reliable vehicle

[Amalek]

I have flown on many airlines while they were in bankruptcy. So did a lot of other people. I don't think the survey is valid. While people might say they would not buy from a bankrupt company, when faced with the decision they will buy whatever product they like at a price they like. Make good cars and sell them at a good price and you could open a Dick Cheney's Car Dealership and sell cars like hotcakes.

[therealredstateblues]

Not a fair comparison

Flying on a trip is a one time deal

Buying a car is a multiple year commitment. Few would make the commitment to buy a product for a company that may not be around to honor warranties and provide service parts

[History-of-Medicine-Geek]

I don't feel that airline bankruptcy is a valid comparison. You don't own the airplane. You are not responsible for its upkeep. If certain delays or cancellations are committed by the airline, you have some protections and help available. In general, the cost is also much lower to the consumer. People don't take out loans to pay for airline tickets.

Automobiles, on the other hand, are your own property. If you buy a car and then the manufacturer goes bankrupt again, or can't restructure itself without abandoning the car line you have purchased from, then in a few years parts and services will dry up, your warranty lapses, and you are stuck with a potentially very heavy paperweight.

Part of me questions the stipulation that these 6,000 respondents were looking to buy a car within the next six months. I don't think these people accurately reflect the economic situation of the average American now, who is indeed having trouble with their own mortgages, food and gasoline costs, and job security. I doubt they would be shopping around for ANY vehicles.

[SinisterK9]

Flying on an airline is vastly different than taking out a loan, or paying a substantial amount of your income for an item. What if you bought a car from GM, and they go under tomorrow? Who works on your car? What happens to your warranty, when there is no company to support it? Who is going to make parts for your car when they break?

[jfo9077]

There is a big difference. When you step off the plane you are done with that company. You're not wondering if you can get parts for the plane years down the road, or if the company will close it's office in the airport you're flying to and you'll have to land somewhere else. Flying with an airline is a one day deal. Purchasing a vehicle is a $30,000 investment and people want to know that dealerships will still be there for service, parts will be available, and their warranty will be honored. You're analogy is way off.

[Viper]

Did a bank get you a loan for 5 years based on a product sitting in your driveway when you bought a ticket. Would you loan money when the secuirty is the product of a bankrupt company?

Regards

[mightbesane]

What bothers me most is the persistent comment - heard twice on the MSM within the past half hour - that Detroit is stuck building cars that Americans don't want to buy and that's the fault of Congress. If only Detroit didn't have to make those small cars in order to meet CAFE standards, all would be well.
Hogwash.
Toyotas and Nissans were cars that Americans didn't want to buy in the 1970s. Guess what? Americans DID buy them. And guess what? The Big Three wish that they were in Toyota's and Nissan's shoes today.
The Big Three insists that Americans don't want to buy smaller, fuel efficient cars because they've spent billions of advertising dollars to convince us that's the case.

[rays15]

A sensible government policy would have taxed gasoline at a higher rate in order to signal consumers and manufacturers that they needed to make fuel economy a priority. It could have been phased in over several years, making for an orderly transition. But our politicians prefer "hidden taxes" like CAFE, rather than being identified with a tax hike. Higher gas taxes, like in Europe, Japan, Korea etc. would have allowed the market to dictate sales, not government fiat. Every carmaker in the world first makes the vehicles that are most wanted in its own market; with petrol expensive, the home markets of Japanese and European markets demanded smaller cars - thus they had them when the market shifted in the U.S. Don't forget, Toyota and Nissan also made huge investments in big trucks for the U.S. market.

[KillTheMessenger]

Look, nobody says you can't buy the largest truck Detroit builds. YOU can. So can everybody else who wants to. At least for now.

The real question is, will you be happy with it? Will you swallow $4/gallon gasoline prices without getting upset the next time they come around?

The other, more important question is, does the government act responsibly if it lets the country get dependent on oil imports? The answer is trivial: no. And since there is no other solution to that than to regulate engine size and consumption, the government has a responsibility to change the current situation AGAINST the wishes of the people and those of a few select companies.

Everything else is a completely secondary discussion.

[therealredstateblues]

Toyotas sales are the worst since 1969, profits are down. they are offering zero financing and rebates to move product just like detroit

Toyotas product mix relies heavily on trucks, SUVs and larger cars too.

GM has more models that get over 30 mpg than toyota does.

Ford F series truck is still the number 1 selling vehicle and has been for 3 decades


GM still sells more vehicles than Toyota


Ford more than Honda

Chrysler more than Nissan and Hyundai put together

US brands still have over 50% of the market

cars no one wants to buy? hogwash

An economny that makes it hard for people to buy anyones cars? you bet

[mightbesane]

Yes, in bad times everyone suffers. But don't tell me that the Big Three wouldn't trade their balance sheets for those of Toyota or Nissan, don't compare what's happening just inside the US to the worldwide profile of these companies when discussing financial viability, and don't tell me what types of cars Americans would prefer to drive until you factor out the billions of advertising dollars that have been spent to support a business model based on high return per unit rather than efficiency of both production and vehicle operation.

[Amalek]

Wrong it is a religious thing. Listen to Sean Hannity and the now deceased Jerry Falwell. It is your God-given obligation to drive an SUV, the bigger the better. They both drove Escalades.

The reason? God told us so. He told us to exercise our dominion over the earth, to subdue it. And what better way to subdue the earth than to get it under the wheels of your Escalade and suck all the oil out of it. The sooner we ruin this earth the sooner Jesus will return.

Bring it on.

[Viper]

Nissan was on the ropes just a few years ago.. same for mazada. Bailed out and Nissan is run by the President of renault... a French man.

The most powerful/fastest sedan is from Nissan. Nissan/Toypota's fleets get lower miles per gallon now than 20 years ago.

Regards

[therealredstateblues]

Fored rescued mazda from bankrupcy 20 years ago by buying up a majority stake

[Ballot]

I ceased purchasing American automobiles after undergoing poor quality control and little residual value. What has really changed that would persuade me to purchase them again? Nothing. If people want to purchase American automobiles then go right ahead, but I put my money where it will at least yield some return on high-ticket goods like vehicles that simply do nothing but depreciate to begin with. There are better American industries to be putting money into than the Big 3 US automakers who will simply take the money and run. Run out that is as they really have nothing that is going meet any time frame to guarantee their success. Ford might make it; Chrysler was dead the minute Cerberus bought it; GM is being crushed under it own weight.

[ktthecarguy]

"I ceased purchasing American automobiles after undergoing poor quality control and little residual value. "

And you obviously haven't checked back since then. Several individual models of US cars are actually BETTER quality then their Japanese competitors.

Please do some research before posting provably false statements.

[therealredstateblues]

And US brands blow away the european brands on quality too.

The Chevy Malibu was Motor trends car of the year

Ford is ranked by consumer reports and JD Power as having the highest quality cars

Ford just recieved the Insurance Institute for Hiway safety highest ranking for the most models with 5 star crash ratings as well

So many of these myths floated around about US cars by the Toyota/Honda kool aiders are so 1980s