Car dealers, buyers weigh in on Big Three's grim outlook

BY CHRIS CASQUEJO, WSBT-TV

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The country's economic downturn has taken a toll on many car dealerships

The country's economic downturn has taken a toll on many car dealerships. (WSBT photo)

By WSBT News1

MISHAWAKA -- The Big Three automakers won't get help from Congress until next month at the earliest. Lawmakers delayed a vote on a bailout package. GM, Ford and Chrysler want $25 billion. That news increases the chances that one or more of them could file for bankruptcy.

Sales are down about 30 percent from last year at Mishawaka’s Gates Chevy World.

Don Johnson has bought four cars from Gates and he plans to buy a new one in six months. Despite the grim outlook, he won’t shy away from Chevrolet.

"I bought my first new car here, a '68 Chevelle Supersport. $3,000 brand new back in '68. And if they do bail out GM, I think they should take the CEOs and cut their bonuses, these million dollar bonuses, if things aren't going too good. But I'll still buy a GM car,” Johnson said.

Matt Helmkamp is president of the dealership. He believes that GM will not only survive, but eventually thrive. He believes the company is building better vehicles than years past.

“They have 30 models that get better than 30 miles to the gallon, as far as fuel economy. Everybody's been talking about that,” he said.

GM says it could run out of cash to operate its business as soon as the end of the year. But even if the company has to declare bankruptcy, Gates Chevy World says it will be business as usual where customers are concerned. Dealers say many costumers are asking about warranties and they say will continue to honor those agreements.

"One of the things a company can do to stay in business is stand behind their cars. They have had such low warranty costs that they recently raised their warranty to 100,000 miles on their power train in response to that they're just not paying a lot of warranty costs,” Helmkamp said.

With the immediate future looking bleak for American car companies, some buyers are making a patriotic appeal.

"I think people should wake up and buy an American car, keep the American people working,” said Don Johnson.

Congressional leaders want the Big Three car companies to develop a plan showing they can be economically viable before they approve any bailout money.

Sunday, Nov 30 at 12:27 PM USA Makes Crap Cars wrote ...

The US makes crap cars. It's very simple. Compare US Car to a Honda... It never compares.

Saturday, Nov 22 at 9:55 AM Charlene Moss wrote ...

I cant drop the prices of them cars.. it cost us a lot of money to put them on display and now we have to drop the stupid prices. Pay the price and get a wonderful car where you wont be sorry nor will have problems with it. Think about an insurance for yourself. If the car runs well through the rough winters that we have then it is a good car. And the gas does not take much. Besides the gallon is getting lower by the week. So dont be a gripe start using your money for a good cause and buy a chev

Friday, Nov 21 at 3:19 PM Paul wrote ...

Not everyone at the big 3 are overpaid CEOs or Union members. People need to wake up and realize 3 million American jobs are at stake. How many incentives did the Indiana state government give to Honda and Toyota to sit up operatios here? In Alabama, the government gave over $100,000 per tax payer to Mercedes. But our own government won't lend the money to help save the economy. Every new car label states exactly where the content came from. Check it out for yourself.

Friday, Nov 21 at 2:33 PM dd wrote ...

to all those 'buy american ' people. I would agree with you in regards to actual American made products, but not necessarily American companies. GM and Ford both have have significant number of models made in overseas factories..and they take the income from the sale of these and invest it overseas instead of in America, while foriegn companies like toyota, honda and subaru invest in America, building new plants and providing jobs...It may take Solomon to decide which way to go

Friday, Nov 21 at 11:12 AM JIm wrote ...

I needed an economical new car at a good price with a good warranty. GM and Ford didnt have one, so I bought a KIA

Friday, Nov 21 at 10:25 AM Anonymous wrote ...

buy a used car for 1/2 the price. its just that simple!!!

Friday, Nov 21 at 10:22 AM Listen wrote ...

Get ready for the big depression. Your government has lied to you on every angle. You did not get CHANGE with Obama, you will get more of the same and it will get much worse than it is now.

Friday, Nov 21 at 9:11 AM JON MITCHELL wrote ...

Time for bankruptcy and restructuring. My brother-in-law works for GM, was offered 60,000 dollars to take an early out-he said no he wanted 100,000 to leave a job that is losing money. It's time for some reality.

Friday, Nov 21 at 8:51 AM Anonymous wrote ...

DROP THE PRICES ON THE CARS AND YOU'LL SELL MORE!!!! it's just that simple.

Friday, Nov 21 at 8:22 AM Anonymous wrote ...

I recall 0% financing for 60 months with very low apr. Perhaps, this was early red flag or a warning that GMAC was in trouble.

Friday, Nov 21 at 5:11 AM TJ wrote ...

As soon as my limo gets out of the garage I'm gonna have my driver take me to Washington and ask them if they can help me pay my NIPSCO bill. Who thinks they will?

Friday, Nov 21 at 3:22 AM Anonymous wrote ...

Wow how out of touch is the american pubic? buy american? who was it that just built a HUGE PLANT outside of Indy...Honda !! So isn't that "american" or at least the last time I looked at a map Indiana was in America. As for 8:18 underpaid, if you are a cute female hit me up, I love to fly and can afford it cause I am one of those overpaid union workers.

Thursday, Nov 20 at 11:08 PM Stan wrote ...

We're headed for government built vehicles just like Germany with the Volkswagon. It led them out of a depression. Of course this was the mastermind of Adolf Hitler. Repeat of history?

Thursday, Nov 20 at 10:37 PM Ed wrote ...

Anyone who didn't see this coming to the big three 20-30 years ago is as blind as a bat. The Unions would only strike 1 of the 3, that 1 was so afraid of loosing a dime to the other 2 would give in the the outrageous demands of the union until they have gotten to the point of not being able to compete. Take a look at what the CEO of Hyundai or Toyota make compared to the CEOs of the big three. It has finally caught up to both sides. The sad part is a lot of others will pay for their greed.

Thursday, Nov 20 at 9:33 PM Food4Thought wrote ...

How does this sound? The CEO at Ford and GM will NOT take $1 per year like the CEO at Chrysler is currently taking. Ford and GM don't have a recovery plan while Chrysler unvield theirs today!!! visit grabdemocracybythehornsdotorg and find out!!!

Thursday, Nov 20 at 8:57 PM Shoppy wrote ...

I have owned Chrysler Chevys Fords All three have been a very BIG!!!dissapointments. Poor quality I also have owned three foriegn vechicles which my next car will be foreign made. I thought I would by American for my last car to help my fellow American My last vechicle a Chevy started falling apart almost as soon as the warrenty expired. Many of the items were clearly planned obsolence. I wrote GM to complain and was told they would give me money money off if I would by a new car. Are you nuts?

Thursday, Nov 20 at 8:54 PM Cornfusion Part 2 wrote ...

The monkey was off his back and he coasted knowing that everything was taken care of. Once this 700 billion bailout was approved you could have launched a ship from the wind created by big companies sigh of relief. Now they're not as far into the woods but they dragged us all further in with them. They need to act like they have something to lose if they don't come up with a plan. But it might be hard for any of them to focus because they've lost that sense of urgency and it is the holidays.

Thursday, Nov 20 at 8:47 PM Cornfusion Part 1 wrote ...

Anyone who didn't see this coming should get their eyes checked. And OUR WATCH DOGS, government leaders, were either sleeping or stupid. When I bought my first car I financed it. My Grandfather went NUTS! "If you want to pay somebody to use their money, keep it in the family, PAY ME!" he said. So he paid off the note and I paid him; a lot less. I paid back every cent. My cousin lost his job and was about to lose his car so grandpa stepped in. After that my cousin felt he didn't have a problem!

Thursday, Nov 20 at 8:42 PM Michelle wrote ...

If you read about Mr. Ford he made his employees come up with what we know today is the v-8 engine. At first the employees said it couldn't be done. Then they were still given 6 months to "do it" they didnt get it. Mr. Ford gave them another 6 months and he told them no excuses he wanted it done. It was his very tenacious spirit and would not take "can't" as an option. My thoughts would be have congress tell all of them no and let them go back to their own drawing boards. Change some habits.

Thursday, Nov 20 at 8:18 PM Underpaid wrote ...

I work for a local communty college and am paid wages that are considered poverty level. I can't even afford to pay for inurance.Yet there is money for the administration to remodel, but no $ for us workers. Won't Congress bail us underpaid workers out. I'd just like to be able to fly on a commercial jet someday. But that will never happen at my low wages. I can barely afford gas to drive to my job.Where did they find the $475,000 to remodel anyway? HMMMM Always no money,same ole same ole.

Thursday, Nov 20 at 8:08 PM John T. wrote ...

GM Fan don't know what rock you are leaving under buy 90% of GM's come out of Canada and the new Camaro isn't even being built here. Toyota and Honda American built? Go figure.

Thursday, Nov 20 at 8:05 PM Walt wrote ...

The countries foreign debt soared during the eighties and nineties bringing us to where we are today. That's alot of Hondas and Toyotas. And lately Walmarts not helping either. Buy American, or at least take a trip to the dealer and see what they are producing in the last few years. The new Malibu is a Camry beater...

Thursday, Nov 20 at 7:50 PM Todd of Niles wrote ...

DO NOT BELEIVE GATES THEY ARE LIARS THEY WILL TELL YOU ANYTHING TO GET YOUR BUSINESS IT HAPPENED TO ME IT WILL HAPPEN TO YOU!!!

Thursday, Nov 20 at 7:06 PM Anonymous wrote ...

You know why the other auto manufacturers aren't in this bad of shape? Because the American people have lost their pride and turned their back on U.S. products. Just think of how many foreign autos that could have been American. Wake up America! So many people these days are just sheep.

Thursday, Nov 20 at 7:00 PM Siege wrote ...

I am fairly ignorant about what could happen if this bailout does not happen and will continue to try and educate myself on it. As of today, I really have a problem with a bailout. Didn't the CEO's look like fools when they took their private jets to beg for taxpayer's money?

Thursday, Nov 20 at 6:56 PM kinda hard wrote ...

Kinda hard to think about buying a GM, Ford or Chrysler right now. It may be hard to find parts 10 years down the road.

Thursday, Nov 20 at 6:53 PM Anonymous wrote ...

Why bailout a bunch of lazy union workers and overpaid CEOs? I say let them tumble right down the tubes. 80% of the parts on "American" made cars come from China anyways. So taxpayer bailout money would go to: lazy union workers who stand around, overpaid CEOs who sit around, and China. What a stupid idea!

Thursday, Nov 20 at 6:50 PM GM Fan wrote ...

I have cash in the bank to buy a new car but am holding out for a gas-efficient model. I have bought GM all my life and would hate to see them go out. It's a myth that those Japanese cars are better. People who are not supporting our home-based businesses are killing our country and eventually it'll get them too. People should start reading history and learn love of and pride in America. Read about the Bataan Death March and then rush out and buy Nippon.

Thursday, Nov 20 at 6:20 PM anon wrote ...

Sound advice..buy American and invest in our own country for a change. Those screaming the loudest for help and change are the very ones buying foriegn products..and no more outsourcing.

Thursday, Nov 20 at 6:17 PM Anonymous wrote ...

WHEN THE GENTLEMAN FROM GATES SAYS GM HAS GOT 30 MODELS THAT GET OVER 30 MPG, THATS MOST OF THE PROBLEM RIGHT THERE. IMAGINE HOW MANY DIFFERENT PLANTS AND WORKERS IT TAKES TO MAKE ALL THOSE DIFFERENT MODELS. TIME TO SLIM DOWN GM.

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