The Obama Bounce? Chrysler Purchase Intent Up, Edmunds.com Says
By Michelle Krebs May 5, 2009
SANTA MONICA, Calif. -- Despite General Motors and Chrysler executives insisting for months that the spigot for sales and shoppers would shut off with a bankruptcy filing, quite the opposite has occurred with Chrysler of late, according to data collected by Edmunds.com
, parent of AutoObserver.com
.
On Thursday, Chrysler filed for Chapter 11 reorganization in bankruptcy court. Since then, the visitors on Edmunds.com's Web site who are shopping for Chrysler models shot up 15 percent. By comparison, GM's shopping consideration dropped 6 percent since Thursday and Ford's was up 7 percent.
"Maybe It's the Obama bounce," suggests Edmunds.com CEO Jeremy Anwyl.
Indeed, in his announcement last Thursday that Fiat would merge with Chrysler and Chrysler would go into bankruptcy, President Obama made a plea for Americans to buy American cars. "If you are considering buying a car, I hope it will be an American car," Auto Salesman-in-Chief Obama urged.
It also may be that the Chrysler bankruptcy announcement attracted the bargain shoppers, who may think a bankruptcy is the same as a liquidation with price-busting clearance sales. Indeed, dealers reported a flurry of traffic last Thursday after Chrysler filed for bankruptcy, in part because it was the last day of the month when there is often a rush to close car-buying deals. However, dealers also say customers are coming into the showroom making outrageously low offers for Chrysler vehicles, expecting dealers to take any price just to sell a car.
Indeed, throughout the recession, Edmunds.com has seen a trend of bargain shopping, from customers going after value brands like Hyundai and Kia to ordering smaller engines and lower trim levels.
Or maybe 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.
Time will tell if Chrysler's bounce in shopping will last.
LEAVE A COMMENT