Originally Posted by
lil brown bat
"Slowdown"? You're joking, right? Ford wants a $9 billion line of credit, GM says it needs $12 billion to keep operating. There are still plenty of auto companies in the world, and that is what people are buying. This has nothing to do with bicycles or whether people are riding them to work. Nothing whatsoever.
Classic comment from some one completely uninformed and knows nothing about.
Even if the funding goes through, detroit has shed thousands of jobs already from their white collar work force at a level that has never been seen, and it can be traced back to nearly 7-8yrs of having to consistently sell vehicles off at 0% financing to keep product selling (example: the camaro stopped selling. Why? due to 0% financing a corvette is almost the same cost, hence that is what the customers bought) .
On top of a vehicle market that is increasingly stagnant due to even more people not purchasing vehicles, the big 3 have large and heavy legacy costs that span back for decades of retired employees pensions and health care. Up until GM's recent decision to cut that legacy cost of retirees health care the company had not been an auto manufacture for years, they were a healthcare provider that just happened to build cars to pay for it. It was to the point where GM had more retired employee's +dependents than actual people working for the company. When $1300 of each vehicle you produce is having to go directly to healthcare costs you cannot survive and sell a cheap low cost product, you are screwed no matter what.
These problems are common though out the US auto industry, with decades upon decades of having to shut down plants due to decreasing amount of product sold they also had to push higher margin vehicles to keep products flowing for both blue collar and white collar jobs, hence the american flood of SUV's which were the vehicles with the highest rates of return on both investment and time.
Area's of the US that have been most effected by this are indeed the great lakes area and michigan, half if not more than half of the state is completely reliant upon the auto industry in some way, may it be through service industry, child care, health care, schools, universities, the whole economy of the state.
Besides current job losses/possible bankruptcy in the auto industry, nothing is actually that different here in Michigan (we're used to plants shutting down all the time), we've had high unemployment, low growth, stagnant and slowing economy, an intellectual and generational exodus from this state for many many years.
The money is needed for a large part to just stay afloat and keep hundreds of thousands of people in jobs, GM themselves have chevy volt ready to hit the market, the other auto makers have products extremely close to come out already (vehicle development can take 4-5yrs), and with how long it takes to get a product such as a car into market, none of us knew 4-5yrs ago we would all be hitting this wall.