Why southern politicans oppose the car bailout

Posted 7 years ago by Adam Gautsch

A follow up article helping to answer Evan's earlier question, "Is the death of the Big Three automakers good for South Carolina?"

Today's Southern solons have watched their local economies blossom thanks to a younger, more-vibrant auto industry unencumbered by the Big Three's legacy costs and union work rules—a sort of anti-Detroit that has the flexibility and ability to turn profits by making the types of cars that Americans actually want to buy.

3 Comments

Elliot Ross ~ 7 years ago

If they are lucky - that could happen - but there are a couple of other possibilities.

1) The companies that supply Detroit - they also supply the South. So a Johnson Controls, a Lear, or a Magna also dies - so the south has no parts to build cars. (trust me - those parts don't grow on trees)

2) I read an estimate years ago that for each 1 direct manufacturing job in the auto sector -there are 7 jobs that support it. That includes everything from accountants, lawyers, hair stylists to the kid at the 7-11

So with the 100's of thousand manufacturing jobs at risk - multiplied by 7 -

No one is left to actually buy those nice southern cars .....

Regards :-)

Evan Tishuk ~ 7 years ago

Until a 21st century railway system is installed, Americans will still need cars. They'll just buy more affordable ones that (hopefully) will be a little smaller and use less/no gasoline.

Or maybe, with all the new employment dollars generated by a national commitment to improving transit infrastructure, more people will have money to buy big honkin' American cars again? Vicious cycle.

Nobrainer ~ 7 years ago

Here's a big question to which I have seen no coverage, let alone an answer.

Given that auto sales are way down and that massive auto-industry contractions are in the works, what's the difference in outcome between doing nothing and bailing out the Big 3?

Another good question, is that if failures of the Big 3 are bad for Canadian jobs and for Japanese automakers, etc, then are entities such as the government of Canada and the Japanese carmakers willing to help the bailout efforts?

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