Auto Coalition Says That Six Million Jobs Disappear If U.S. Automakers Expire
If you haven’t heard that executives from America’s major automotive manufacturers are meeting with Congress in a bid to secure tens of billions of dollars in loan cost loans, then you are missing one of the news items of the year.
Executives from General Motors Corporation, the Ford Motor Company, and Chrysler LLC are asking Congress and the President to approve a loan guarantee program that would allow each automaker to secure funding, monies they say is essential to whether they stay in business or close down shop. Last month these same executives flew to Washington in corporate jets and were roundly criticized for this action. This month, the executives ended up driving some of their most economical cars to the event including a pre-production version of the hybrid Chevrolet Volt, the hybrid Ford Fusion and the hybrid Dodge Aspen.
Several groups have been speaking out in favor of federal government intervention and some have spoken out against assistance. One group wanting to see Congress intervene is a group that calls itself the “auto coalition” and group of auto suppliers, dealers, and other interested parties representing some six million people in the U.S. What they said follows.
“With six million supplier, dealer and related jobs at risk nationwide, failure of the domestic auto industry is not an option,” said Timothy D. Leuliette, president & CEO of Dura Automotive Systems, Inc. “In addition to the ‘Big Three’ auto companies, countless supporting companies drive good jobs in local economies all across the nation. These are hard working men and women struggling to support their families and communities in the midst of this global economic crisis. Congress must act now to support a bridge loan – not a bailout – for America’s auto industry.”
Given the urgency of the situation and the need to counter misinformation about the vital role the domestic auto industry plays in the U.S. economy, The Engine of Democracy coalition was formed to give voice to the six million people whose jobs are directly or indirectly tied to the health and vitality of domestic automakers. With minimal publicity, the interactive website, www.TheEngineofDemocracy.com, launched on Monday and received more than 15,000 visitors in just four days, generating more than one thousand grassroots emails and letters to Capitol Hill in support of the automotive bridge loan program.
“The American auto industry has long been our nation’s engine of democracy. In World War II, it turned on a dime and became what President Roosevelt called ‘The Arsenal of Democracy.’ After September 11, automakers responded by slashing prices and loan rates to jump-start a needed economic rebound. With the global economic crisis, now is the time for the government to help automakers help the American economy,” said Carl Galeana, who owns several new car dealerships across the country.
America’s car companies play a crucial role in the nation’s economic engine. Almost 4 percent of U.S. gross domestic product is auto-related, and vehicle manufacturing represents 10 percent of U.S. industrial production by value. According to The Automotive Trade Policy Council, the U.S. auto industry invests $10 billion in this country in plants and equipment each year. In addition, the U.S.-based auto industry is second only to the semiconductor industry in R&D spending – $12 billion last year alone.
“If Congress does not take swift action to prevent the collapse of our domestic auto industry, the already hard hit automotive Midwest will be ground zero, but the economic fallout will instantly spread through local economies all across the country,” said Neil DeKoker, president of the Original Equipment Suppliers Association.
Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt is a contributing writer for Andy’s Auto Sport an aftermarket supplier of quality parts including apparel and bed bars.
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