Automobile Bailout

Listening to NPR on my way home for Thanksgiving, I came across two interesting reports. Riding on the coattails of failed banks in the bailout plan the three major American car manufacturers (GM, Chrysler, and Ford) all lobbied congress for their own bailout plan. GM and Chrysler are in more financial trouble than Ford. GM and Chrysler went to Congress with hands extended looking for financial help. Ford although having 2 horrible quarterly earnings is not in the financial troubles of GM and Chrysler. Ford only asked that they be allowed to take government loans next year if their earnings do not turn around. Congress met the CEO’s with much scrutiny. One congressmen went on to say that the CEO’s flew here in private jetliners with tin cups in hand. Congress also asked if the CEOs were willing to cut their personal profits and pensions, GM’s CEO responded that his pension was fine how it was. I have to agree with congresses sentiment towards these American automobile moguls. Arriving on million dollar private airlines and securing double digit million dollar pensions how much trouble can the industry really be in? I feel like Private businesses should survive or die on their own and perhaps one less American automobile manufacturer would be a good thing.

However the Chamber of Commerce in Ohio is fearful of the plummeting sales of American automobiles. In this particular city in Ohio, like many other cities across the country, this city was built upon and still relies on the American automobile industry. Ford started a more fuel efficient European inspired manufacturing plant in Ohio that employees over 5,000 in the city. Not only are there those 5,000 employees directly under Ford but over 7,000 workers rely on the production of Fords plant. These 7,000 are tow truck drivers, car transporters, mechanics, and other companies that receive contracts through Ford. The COC understands that Fords falling numbers might mean a cut on newer projects like the euro-fuel efficient car production site in Ohio. This personal story helped me realize that it would be detrimental to America’s economy and work force for one of these American automobile manufacturers to go under. The loss of jobs, the lack of automobile competition, and less money being spent in our economy would prove horrible. Ohio’s case made me realize that some sort of aid should be supplemented to these companies to keep American workers working, spending and driving.