No bail out said...
News Flash! Rexel (Southern Electric) closed their doors last week and now England Motor Company today.
It does appear that these rumors are true. If you have been following the news, you probably know that the big "three" US auto makers have proposed closing scores of auto plants as well as hundreds of dealerships in return for a bail-out from Uncle Sam. The CEO's of the big three even offered to work for $1.00 per year as their personal "sacrifice"... (I could probably do the same if I had netted $40 million in salary last year.)
The reality is that it is bad now and it is going to get worse. One out of every six jobs in this country are directly or indirectly tied to auto manufacturing. Auto dealerships, parts manufacturers and sales, insurance companies will all suffer major job losses as a result of this plan.
My prediction is that we will see more closures of auto dealerships or at least major consolidation. Honda is too good of a product for someone not to pick up that line, but the days of Ford are probably numbered. The financial impact that these closures will have, both locally and nationally, will be devastating as the unemployment lines grow.
Uncle Sam announced this week that we are officially in a recession (and have been since last December). Wow, what a revelation! How will those poor auto-moguls ever survive on $1.00 a year?