Car Troubles

The American auto industry has hit rock bottom. And today, three of the major Detroit auto makers appealed to the government for emergency assistance. The industry is nearing the edge of collapse. Executives from General Motors, Ford and Chrysler were turned down in their bid to receive $25 billion from the governments $700 billion economic bailout.
According to Senator Michael B. Enzi, a Republican from Wyoming. “We have little evidence that $25 billion will do anything to promote long-term success.” And after four hours of testimony, the outcome remained bleak for the industry – two of the three major auto makers has stated that they could run out of money by the end of the year.
This is a sad time for America. The auto industry is not just an industry, it is a part of our culture. Henry Ford and the American auto industry led the country during the Industrial Revolution. Cars were symbols of the American Dream and a job in the auto industry was often where the dream began for American immigrants. And now, as it is teeters on the edge of the cliff, one question remains: Will the government save this industry again?

The auto industry is one of the leading job providers in the country. And as we face a growing recession in 2008, it would seem that a collapse in Detroit could only worsen the fall. They auto leaders are stuck in the middle of their own recession and adding the current economic crisis broke the camels back. It is necessary that the industry survive - necessary for American culture and the American economy.
The industry hosts 105 automobile plants in twenty different states. And, including the 14,000 car dealers, the automakers employ several million American workers. For the government to refuse assistance to a major industry in this economic crisis is unacceptable. It is the government playing favorites – and that is not what the government should do. Why bailout one part of the economy and not help another sector that is equally important?
Further, it is political suicide that our politicians are refusing to assist the industry, its workers, and therefore their constituents. Yes reforms are necessary, and the future of the industry may seem bleak. But it is better to keep the industry alive than to let it collapse in the midst of our already-unstable economy.

Now, of course there are major issues in the auto industry. The unionization of workers has assisted the failure of these auto makers. Half of the $50 billion that the industry asked for early in November was to be directed to healthcare alone. When a union such as the United Auto Workers (UAW) forces the hand of a company too far, the industry cannot compete successfully in a global market. Remember, Japan produces more cars than America. And being that as it is, American automakers must create business strategies to compete within the global market.
Changes are necessary. We cannot ignore the current crisis – we must assist the auto industry or else face worse economic downturn.