Why is GM not buying time
by filing for bankruptcy protection?
Because they would never come out of it.
Sure, bankruptcy protection
helps companies deal with creditors.
It forces creditors
to step back from payment demands
and allows the company time to reorganize.
But bankruptcy protection
also sends a signal to consumers.
It says “may be out of business soon.”
When a company goes out of business,
warranties or guarantees are worthless.
Products are discontinued.
Replacement part production is discontinued.
Support goes away.
1-800 lines are discontinued.
Warranties, guarantees and support
are important to car buyers.
Their purchase will be driven for years.
Think hard before filing.