MYTH: The demise of the American auto industry won't really affect the American way of life.
FACT: What happens to the U.S. auto industry matters on Main Street.
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 nearly 355,000 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.
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