Local car dealer reacts to failed bailout plan
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"The prospect of the big three going bankrupt is tough on a dealer level because there is some uncertainty as to whether consumers will react and still purchase cars from companies that are in a reorganization," Charles West says.By HARLOW SUMERFORD
6 News Reporter
KNOXVILLE (WATE) -- It's been a tough year for the auto industry. First, they lost business due to ridiculously high gas prices and now comes talk of bankruptcy.
Many local car dealers publicly support the government stepping in and providing bridge loans to the big three automakers.
Charles West, of West Chevrolet, believes the plan would have provided needed stability.
"The prospect of the big three going bankrupt is tough on a dealer level because there is some uncertainty as to whether consumers will react and still purchase cars from companies that are in a reorganization. So that is the uncertainty that frightens us," West says.
With lower gas prices recently, sales have started to rebound. West is hoping the latest move doesn't hurt slow business.
"They really want us to clean out our lots and need us to order new cars. That is what will help General Motors more than anything, us selling our existing cars. That is where they make their money. It is not when we sell to customers. They make money when they sell to the dealer," West says.
To help clean out the lots, many dealerships are offering larger rebates and better deals.
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