Workers, Consumers to be Biggest Losers in Big Three Automakers’ Breakdown

Michigan’s three major car dealers -- Chrysler LLC, Ford Motor Co. and General Motors Corp. -- have direly petitioned the Senate this week for a $25 billion bridge loan while autoworkers’ jobs hang in the balance. 

Senior executives say that without the bridge loan one or more of the auto companies could collapse by the end of the year. The companies that are most at risk, according to the Detroit Free Press are General Motors and Chrysler.

On Thursday, Congressional leaders said that no agreement had been reached. Instead, they asked the auto companies to submit formal plans outlining exactly how the money would be spent.

If Congress refuses the bridge loan, the companies may be forced to liquidate, which could translate into a significant loss of jobs in Michigan and across the country.

Ron Gettelfinger, President of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) said in prepared testimony to Congress Wednesday, “The consequences would be truly devastating, not only for UAW members, but also for millions of other workers and retirees across this nation, and for the entire economy of the United States. Hundreds of thousands of workers would directly lose their jobs at Detroit-based companies.”

In Michigan alone, the big three employed over 239,000 workers at the end of 2007. An additional 730,000 workers produce materials and parts that go into cars, and about 1 million more people work in domestic car dealerships nationwide.