Quote:
Originally Posted by RedlineIRL
It pisses me off that most Americans think that it's ok to let the US auto industry go under, and with it will have no affect on them at all. It pisses me off that most Americans didn't think twice or have any objections on a basically no strings attached bailout for Wall Street and the financial firms, but yet when our US auto industry is asking for a LOAN people are all against and thinking that that it's a bad thing. It pisses me off that most people seem to not be concerned with an industry that is the economic backbone of our contry.
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Man, you aren't kidding. I know I posted this before, but I'll post this again. One) Most of the suppliers used by the Japanese and German transplants are also used by the Detroit 3, and are disproportionately dependent on the Detroit 3. Period. A Chapter 11 by any of the Detroit auto companies will tie up enough of the money coming back to the suppliers to pay previous bills, that it will push several suppliers into Chapter 11. Except one - Delphi. Delphi has been in Chapter 11 for years, and has been unable to secure the financing to get out of Chapter 11. A GM Chapter 11 pushes Delphi into liquidation - Chapter 7, at a time when there isn't the financing easily available to buy off pieces of Delphi. Delphi, in addition to being GM's biggest supplier, is one of Toyota's. And contrary to the uninformed, rocket-scientist keyboard jockey's posting "send them into chapter 11" all over the internet, and contrary to the know-nothing politicians in Washington, DC, auto suppliers can not be replaced in a short period of time. Automobiles are complicated machines with 6000 to 14,000 parts. Shortage on one key part, you're S.O.L. - you don't build cars. Period.
That's going to happen to every single transplant assembly, stamping, engine and transmission plant in North America after a Detroit C11 filing. When depends on which supplier goes down first. Last time I posted that, one Autopian said I was playing Chicken Little and in a later post, made a "spoken like an industry insider" crack. My response today is "tough". Damn right I'm an industry insider. Two family members, my sister one of them, work for European owned auto parts makers (Bosch and Trelleborg Automotive). They said the same thing I did. A neighbor across the street from me works for Metaldyne. He said the same thing I did. Another neighbor is an engineer for Eberspacher Automotive (exhaust systems) - says the same thing. Neighbor of one relative works for Nissan's engineering center here in Farmington, MI - says they, Nissan, are nervous for two reason - one, what I've posted here, and two, the Japanese nationals working here have expressed a concern that all Japanese automakers will get blamed for Detroit's problems. They're still paranoid.
Two, the layoffs caused by the disruptions in the auto industry, even is most are as short as several weeks to a few months, it will absolutely deepen this recession, and that will affect every state. All of them.
Three, auto manufacturing is 20% of all manufacturing and Detroit is 70% 0fthat 20%. 14% of all manufacturing. How the hell does a Detroit 3 banruptcy NOT affect all of the economy?
But, hey, all the keyboard jockeys are right, and those of us speaking out in favor of the loans are wrong. Bullsh*t. We're wrong when hell freezes over.