Feb 18, 2009 4:22 pm US/Pacific
On The Auto Chopping Block: Saturn, Hummer, Saab
Saturn, Hummer, Saab Are Brands On Chopping Block
DETROIT (CBS) ―
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(L-R) Chairman and CEO of General Motors Richard Wagoner, United Auto Workers President Ron Gettelfinger and President and CEO of the Ford Motor Company Alan Mulally testify before the Senate Banking, Housing and Urban Affairs Committee on Dec. 4, 2008.
Chip Somodevilla/Getty Images
Car makers GM and Chrysler are downsizing in an effort to cut costs. Some of the automobile models on the chopping block include Saturns, Hummers, and Saabs.
As part of its downsizing, GM is also supposed to shrink its 6,600 dealership network down to about 4,700 dealers by 2012.
All of this has consumers very concerned about their warranties and service costs.
Even if your car is discontinued, GM should still honor your warranty, CBS station WCBS-TV reported. Experts say parts and services for these specific cars will still be available at other GM dealerships at comparable prices.
For owners leasing a discontinued car, the terms of the loan should remain the same. The lease will be honored by the parent company's finance arm, which is GMAC Financial Services, WCBS-TV reported. If you have a car loan, just continue making your monthly payments.
Consumers should not try to sell a dropped brand, according to experts. The resale values of these brands, which were not strong to begin with, are expected to fall even further – up to 40 percent.
On the flip side, consumers looking to buy cars can get great deals as dealers look to clear inventory off lots.
Chrysler says it will cut 3,000 jobs and three car models. GM says it will eliminate 47,000 jobs worldwide and will slash its car brands in half. Both companies are waiting to find out if they will receive additional loans from the government.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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