If Detroit automakers sink....

[val189]

what happens to extended warranties, dealers who handle service,
recalls, and probably other issues. Neighbor with two Dodge vehicles
was wondering. Another reason to bail?

[AndyS]

Andy writes:
I wouldn't worry. Most of the extended warranties are from companies
other than the Big Three.

The people who make replacement parts will still be in business
making
replacement parts, tho the price may go up some. Those companies that
fail will be replaced by other machine shops that want the business...

Dealers who handle service..... I suspect that the service depts
are more
profitable than the sale of cars but I don't really know. Service
needs to be
done on models already sold, and it may cost more, but there will be
people to do them. I suspect that the Dealer lots will become used
car
lots.... Eventually, Honda or Toyota or whatever comes down the road
will run them....

So, in a nutshell, the sky isn't falling if you have a Big Three
car. It just got
a little lower and the cost of keeping it there will prolly go up.....

Andy in Eureka, Texas

[James]

You are correct in your assumption that a well run service department
is often far more profitable than the sales of new cars. And whether
or not one of the big three go down, dealerships will feel the pinch.

Many small cars are sold at or near cost, in order to get more
potential service customers. The profitable vehicles were often the
ones that are no longer selling - trucks and SUVs.

Dealers actually often make more selling a used car than a new one.
And presumably will continue to sell used cars even if one of the OEMs
goes down.

There will be more competition for service.

James

[Rod Speed]

val189 <gweh...@bellsouth.net> wrote:

> what happens to extended warranties, dealers who handle service, recalls, and probably other issues.

Those who were stupid enough to buy those cars have one hell of a problem.

In spades with the value of those steaming turds with wheels.

> Neighbor with two Dodge vehicles was wondering.

They could always do the decent thing and hang themselves.

> Another reason to bail?

Nope.

[kozmo]

rofl

[aine...@gmail.com]

i don't think so..

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aineecumi

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[hal...@aol.com]

China is waiting to buy a automaker just to get the dealer network.

they are ready to sell giga millions of cheap 8 grand econo boxes,
with 100,000 mile warranty.....

the big three will die then even if they survive the current fiancial
collapse