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We think in the short terms this will further hit the local car sales. As the local Chrysler dealers post "Chrysler dealers going out of business," blowout sales, it will hurt other local car dealers in the short term. However, in the long term it may give more market share to them.
Consumers may want to stop by at local Chrysler or GM dealerships. GM has also announced dealership closings. It may be possible that sale signs may be at local GM dealerships as well.
However, don't necessarily buy American because you want to help your economy and from patriotic feelings. It may actually hurt American producers in the long run making them less competitive. I feel really sorry for the thousands of workers that remained without jobs. It's not their fault. The car makers and their managers are to blame for getting their companies into this mess.
We can only help the American economy by helping our producers to stay competitive. This way they will avoid one day posting "Chrysler dealers going out of business" signs on their local dealerships.
Let's just make better and more durable cars.