One of the big 3 is struggling to survive, not to mention Ford and Chrysler are having trouble keeping their heads above water. These companies are facing bankruptcy and may go belly up if they aren't bailed out by the government soon. However, it seems as if GM may be in the most trouble. As I read in an article recently, General Motors is pushing to save every penny it can, even pressing plant workers to shut off lights, turn off air compressors and lower the heat.
The pinching pennies concept came up about a month ago, said a man named David Green. David Green is the president of United Auto Workers Local 1714 in Lordstown, Ohio. He explained that about a month ago, the plant was told workers could no longer work overtime. Additionally, workers decided to cancel a bake sale they hold each year for the Toys For Tots program because GM wouldn't let some line workers earn pay while working at the sale as it has done in the past. He went on to say, "I started here in 1989, and I've never seen it like this. … Every little thing we can do, we're doing. It's really quite amazing."
It's crazy to think a company like GM that's been around for so many years is on the brink of failure. The first two cars I owned were GM made and I loved both of them. I've appreciated the American made vehicles contained so much quality, especially for the price. I couldn't even begin to tell you how many relatives or friends, or hec - just people I know, work for General Motors. It's crazy to think about how many jobs will be lost if the company fails. I believe I saw on MSNBC that if GM fails somewhere around 250,000 jobs will be lost with the company. But that's not even close to what the trickle down effect will cause. If the one of these automakers fails, the laid off employees could easily reach the millions! Furthermore, I'm curious about what will happen to the retirees, or the people receiving benefits from the company. How many people rely on health insurance, their pensions from GM, or other benefits such as dental? Will they lose everything too? Will those services be cut?
As I read in an article, "GM leaders appear to be doing everything they can, too, to ensure survival. CEO Rick Wagoner was in Japan discussing help from Toyota Motor, according to Kyodo News there. Toyota denied the report." The past three days the three automakers have been on Capital Hill before congress explaining why the companies need to be bailed out. Many republicans don't want to bail them out, however, it's hard to even imagine the economic distress that will be caused if one of the big three fails. Could are market even take it? Gosh, I don't even know! How would this affect other industries? Well, it seems as if everything has already been hit extremely hard. Retail. Financial. Tech. You name it, its been struggling through this economic crisis. It's hard to believe that after one of these companies fails, these other sectors will spiral downward even more.
Even if GM doesn't fail soon...and they stay alive for a little while, how do they restore consumer confidence and get people to buy their vehicles? Who wants to buy from a retailer/manufacturer that might not be able to guarantee a warranty on a brand new vehicle?
So what do you think the government should do? Bail them out or not?
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