From plants to parks. From dealerships to driveways. From gas stations to grocery stores. What happens in the automotive industry affects each and every one of us. In fact, the collapse of the U.S.-based auto industry wouldn't just impact the more than 239,000 Americans directly employed by the Big Three. One out of every 10 people in America is employed in a service that is related to the U.S. auto industry. If a plant closes, so does its suppliers, the local stores, the hot dog vendors, and the local restaurants. The effect would be devastating in ways of which you never have thought: * Nearly 3 million jobs would be lost in the first year alone – with another 2.5 million to follow over the next two years * Personal income in the United States would drop by more than $150.7 billion in the first year * The cost to local, state, and federal governments could reach $156.4 billion over three years in lost taxes, and unemployment and health care assistance * Domestic automobile production would more than likely fall to zero – even by international producers, due to supplier bankruptcies The credit crisis that is affecting us all is wounding the U.S. auto industry in many different ways. Carmakers can’t get loans to restructure and to produce new advanced technology vehicles. Suppliers and dealers can’t get loans for routine business, and customers can’t get loans for new cars.[via Facts and Fiction]
SOne of the biggest problems we've had with the request U.S. automakers have made for financial assistance from the Feds to avoid bankruptcy has been a lack of centralized message. The General's apparently trying to change that, this by heading to YouTube by way of their GMFactsandFiction website. The video, titled "The U.S. Auto Industry and the Ripple Effect," aims to make the case for the Feds to "Save GM." For starters, they're claiming one out of every 10 people in America is employed in a service related to the auto industry. If that number's correct, (which we think may be a little bit exaggerated — but not by much) nearly three million jobs would be lost in the first year after the collapse of the U.S. auto industry, with another 2.5 million to follow over the next two years. In addition, they're claiming personal income in the United States would drop by more than $150.7 billion in the first year with the cost to local, state and federal governments hitting a staggering $156.4 billion over three years in lost taxes plus unemployment and health care assistance. Hit the jump to see the video and to read the rest of the talking points. We're still waiting for the talking heads to advocate buying Save GM t-shirts.