Bankruptcy and ‘Obama bounce’ bolsters Chrysler’s ‘purchase intent?’

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

According to the automotive information web site Edmunds.com, Chrysler’s bankruptcy -- coupled, perhaps, with positive statements from the president -- has actually bolstered consumers’ interest in buying a Chrysler product.

Since last Thursday’s Chapter 11 filing, ‘the visitors on the Edmunds.com website who are shopping for Chrysler models shot up 15%,’ the company announced. ‘By comparison, GM’s shopping consideration dropped 6% since Thursday and Ford’s was up 7%.’

Said Edmunds CEO Jeremy Anwyl: ‘I’d call this ‘the Obama bounce,’’ referring to the president’s recent speech in which he discussed Chrysler’s situation and urged consumers to consider buying an American car.

‘Maybe the Chrysler bankruptcy announcement attracted the bargain shoppers who may think a bankruptcy is the same as liquidation with price-busting clearance sales,’ said Edmunds’ AutoObserver.com editor Michelle Krebs.

The website said dealers are reporting that customers are coming into the showroom making outrageously low offers for Chrysler vehicles, expecting dealers to take any price just to sell a car. While Chrysler vehicles are selling for a greater below-sticker discount than the industry average, the difference is not dramatic.

Will this increased ‘purchase intent,’ as Edmunds calls it, translate into increased sales? Too early to tell. ‘Perhaps Chrysler loyalists, though dwindling in ranks, are coming to the aid of their brand -- or seeing this as the last hurrah to buy their favorite brand,’ said Krebs.

-- Steven C. Smith