Sluggish auto economy has trickle-down effect
Sluggish auto economy has trickle-down effect
Communities and auto support industries beyond Detroit, bracing for the worst if the big three automakers can't survive.
Published: November 20, 2008
They are communities and auto support industries beyond Detroit, bracing for the worst if the big three automakers can’t survive.
In Kansas City, Kansas, Union Pacific Railroad workers who transport cars and equipment for the nearby GM Fairfax plant face layoffs if the plant closes.
“It’s gonna take a lot of jobs away. It’s already, I mean just budget cuts alone have cut over a hundred jobs” said Union Pacific employee Joe Robertson.
400-miles east in Dixon, Illinois, the Borg Warner plant makes specialty parts for GM, Ford and Chrysler.
Tough times have already trickled down.
“We’re approximately a hundred million dollar plant and we lost around 20% of our sales,“ said Plant Manager David Jacobs.
And then there are the 20,000 car and truck dealerships struggling with sagging sales.
“Auto dealers are anchors of their communities. When it comes to charitable work, philanthropy, they are second to none,“ said David Hyatt from the National Automobile Dealers Association.
Wolf Chevrolet in Belvidere, Illinois has a rich history of giving back to the community.
Investments that are now in jeopardy.
“If people aren’t buying cars, if I’m only selling 20 and I’m used to selling 80, I’ve got to pay the bills first,“ said Wolf.
In Los Angeles, it’s not just the American auto industry that is hurting.
At the port of long beach rows of import cars like Mercedes Benz, Toyotas are not moving until local dealers are able to sell what’s on their lots.
An industry stuck in park until the future of the big three automakers plays out.
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