Top 3 Auto Makers (sales, finance, pay, wage)

[virginia farm girl]

What type of effect will there be if we don't bail out the top three auto makers?

I went to bed worrying about this...

Anyone?

[Philip T]

Long Term Effect -- none. Better off with the loss of the incompetent operators. All the resources presently involved can be put to MUCH better use.

Short Term Effect -- MASSIVE. Michigan, Ohio, and various local economies around the US implode into an Economic Black Hole that will take a decade to even see light from again.

So pick your time line view and play accordingly.

[kt_mom]

I've been wondering/worried about what effect all of this will have on the auto industry as a whole. My DH is a sales manager for a local import dealer. They have had several very rough months and have laid off several managers and sales people as well as taking pay cuts.

[hindsight2020]

Overall it will be bad for auto workers. Rampant unemployment. Unions will become a thing of the past. As people accept becoming streamlined and "globalized" the wage equilibrium will side with the foregin plants and a non-union work force who are currently driving said work force to work for mcdonalds wages. Your nissan, toyotas and chevys will never come down in price, as opposed to what a reduction of labor wages is supposed to do in theory (because you failed to account for the fact that the market was rigged, that's OUR fault not Nissan's).

The masses will continue to have to finance their 4-year resale shelf life crapocars. Supporting businesses to the industry will follow suit. Your kids will eventually have to take up full-time jobs under your own household, they'll never be able to afford home ownership the old fashion way. We'll be a new age Spain, with children becoming homeowners when the parents die, otherwise it's de facto multi-family "honey don't be so loud my parents are upstairs, go wake the baby". That's the long term effect of the globalized auto maker model for the children of Gen Y. Hedge your bets accordingly.

[texdav]

Fro what I have heard so far it would be better to let them go into chapte 11. That would allow them to restucture and to really see just where they are, I kind of think that Ford is stronger than either GM or Chrysler. Afterall they have has decades to do this on their own and either can't or won't. They have been in trouble for their business model since the 70s' embargo and it got worse wehn the fuel pirces went up.