13 WTHR - Indianapolis News |Auto dealers impatient for solutions

Auto dealers impatient for solutions

Indianapolis - At the same time the Dow is looking up, Chrysler appears closer to bankruptcy and General Motors just borrowed another $2 billion from the government to keep running.

The increasing possibility of Chrysler going bankrupt and General Motors temporarily shutting down most of its assembly plants for isn't helping car sales now, but may later.

Bill Estes Chevrolet talks with dozens of shoppers every day. Relatively few become buyers.

"Consumer confidence is at an all time low. We have all kinds of traffic; people are just deferring putting off these purchases," said Bill Estes, auto dealer.

Consumers are looking for far more than a car. They want the confidence of having a job to pay for it, confidence the dealer will survive to help them and confidence the manufacturer will stay in business to back up the warrantee and supply replacement parts.

NBC confirms Chrysler is now preparing for a Chapter 11 bankruptcy - an orderly restructuring of the company.

"I think it could actually be good for them in the long run, coming out a little stronger, a little better," said Kyle Anderson, IU Kelley School of Business.

There's also fear that some of the GM plants involved in the summer shutdown may not reopen. The automaker insists it is simply matching supply with demand and says plants building its most popular vehicles are unaffected.

However, even dealers are impatient for answers, believing the continued uncertainty over GM's future is more painful than any solution.

"Whatever is going to happen, let's get on with it and get in place. Let the public understand it better and they things will go on with their lives and we'll get going," said Estes.

Chrysler has until Thursday to save itself by working out a government-approved deal with its creditors, the UAW and a merger with Fiat. GM has until June first to restructure and continue to qualify for government loans to keep it in business.

Related stories:

Chrysler could still avoid bankruptcy

Treasury lends $2 billion more to General Motors