GM and the demise of the American auto industry

In light of the current economy, most everyone is struggling and US automakers are not immune, in fact, the Big Three, General Motors, Ford Motor and Chrysler are currently in a crisis that is currently under debate by Congress. The basic question comes down to Federal bailout or bankruptcy and which is better in the long run.

My first reaction was really not to care. No one in my family is employed by the auto industry, so I didn’t really think it was that big of a deal. But the statistics below paint a picture that the issues facing the auto industry do affect myself and every other American.

From plants to parks. From dealerships to driveways. From gas stations to grocery stores. What happens in the automotive industry affects each and every one of us. In fact, the collapse of the U.S.-based auto industry wouldn’t just impact the more than 239,000 Americans directly employed by the Big Three. One out of every 10 people in America is employed in a service that is related to the U.S. auto industry. If a plant closes, so does its suppliers, the local stores, the hot dog vendors, and the local restaurants. The effect would be devastating in ways of which you never have thought:

• Nearly 3 million jobs would be lost in the first year alone – with another 2.5 million to follow over the next two years
• Personal income in the United States would drop by more than $150.7 billion in the first year
• The cost to local, state, and federal governments could reach $156.4 billion over three years in lost taxes, and unemployment and health care assistance
• Domestic automobile production would more than likely fall to zero – even by international producers, due to supplier bankruptcies

It’s not just about the car makers themselves, it is also about the companies that supply the car makers, and so on. It will have a trickle down effect that is larger than we realize.

It just plain sucks that we are having to deal with these issues in light of our own personal struggles. But we need to remember that we do have a voice, and that we need to exercise it. Eventually, the economy will recover but we need to help protect our major American industries NOW so they do not disappear. For more information about the auto crisis and for links on how to contact your Senators and Representatives, go check out: Facts About the Auto Crisis – GM Facts and Fiction.