Thursday, December 04, 2008

No Bail-Out for Local Companies

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?

Forthright

11 comments:

Anonymous said...

i hear dr. erian is leaving. who'll be next?

Anonymous said...

Ford will be fine- GM is what will tumble- the auto industry needs to file 11 and restructure, so that they can revamp the auto unions as well and make the benefits more reasonable. That is probably the only way it will survive.

Anonymous said...

What all of us should do is get the heck outta here. This place cannot and will not ever be saved. It's time we all quit being in denial and RUN FOR THE HILLS!!!!

afternoon blogger said...

who is dr. erian?

Run where? said...

Run where? The financial crisis is hitting everywhere! Just because we were already down does not mean the other communities will fare much better. We have gradually lost over the years, those places are losing in swoops and tsanami waves, much faster than we have, therefore much more impactful.

It would help if Americans would regain trust and start again buying cars and homes.....oh no that is right, Obama is going to give everyone free mortgages and loan free cars! yeah right!

Anonymous said...

If anyone out there is listening: there is a wide-open market for a Honda dealership in Greenville! Pick it up! Look at all those current Honda owners in town who need their cars serviced! The service team is already there! Hire them before they get away!!!!!

Anonymous said...

england motor company had the reputation of being uppity. they would not try to work with any people i know unless you were "old money". i say good riddance.

Long time friend said...

To Anonymous at 8:33 am --

You obviously don't know the first thing about the England family -- they're great people in every respect, and the closing of one of the oldest-- if not THE oldest -- family owned business in Greenville is a tragedy.

"Good riddance"?? - what could you possibly be thinking?

Anonymous said...

I do my car trading in jackson. Trying to get a decent amount for your trade-in in greenville is pointless. What they offer you here is a slap in the face.

Anonymous said...

England always bent over backwards to keep my business, and I certainly am not "old money"---or new money either. The availability of info on the internet made it easy for consumers like me to offer exactly what I would be offering to a dealership in Jackson for a new car, and Perry always was happy to meet the price of any other dealer. They are a very good, honest, and fair family---all of them---and I hope they will continue to stay in Greenville.

Time to go!!!! said...

To:"Run where?"

Are you kidding? Anywhere is going to be better than this Sh*t hole. There are many places that while not doing as well as they did a couple of years ago ther are still oportunities for the non whiners and welfare people who just want to sit on the porch and hollar at the cars that drive by.

I said this 2 years ago, Get out while you can. There is no hope for G-ville and surrounding areas any more. For you folks who say if those nay sayers need to offer solutions. I see none of the yea sayers coming up with any. Get out now or you will be sorry and one day while you are having your Ford fixed at Billy Bobs fix it shop for an axel that broke when you hit a big pot hole, You'll say I wish I could get out but now I'm stuck here, I'm to old to do anything else but whine and wish.

My uncle used to say, " Sh*t in one hand and wish in the other and see which one fills up first."