The Auto Industry: In Serious Trouble
The Auto Industry: In Serious Trouble
Dealerships around the country have already had to layoff employees and many have even had to close their doors. It appears as thought bailout hasn’t touched the auto industry yet. It remains in serious trouble.
Recently, the three largest American automakers pleaded with Congress. They asked Congress for a $25 billion lifeline. This is the only way, they say, to save their failing companies. General Motor’s CEO Rick Wagoner said, “Our industry…needs a bridge to span the financial chasm that has opened before us.” These automakers say their financial crisis is due to the global financial crisis.
The Republicans and the Bush administration is already opposing the plan. They don’t want to touch the $700 billion financial bailout program that the Treasury Department is already dealing with. The Big Three automakers didn’t find much sympathy on Capitol Hill.
Rather, lawmakers tell these auto manufacturers that they have brought their financial crisis upon themselves. The Banking Committee Chairman Christopher Dodd ( a Democrat from Connecticut) told the leaders of GM, Ford and Chrysler that they were “seeking treatment for wounds that were largely self-inflicted.” However, he did go on to say that if something wasn’t done to save the companies, hundreds of thousands of people would lose their jobs.
Rick Wagoner went on. He said, “We’ve move aggressively in recent years to position GM for long-term success. And we were well on the road to turning our North American business around. Failure of the auto industry would be catastrophic.” He also predicted that three million jobs would be lost within the first year.
The outlook for American auto manufacturers looks grim. Lawmakers continue to work behind the scene to reach a compromise. What would become of our country if the American auto industry completely crashed or failed?
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