Auto Industry Bailout on the Way
It looks like congress has approved the auto bailout plan for the big three US automakers. The House of Representatives is lacking their vote, but it is quite likely that the automakers will get part of the bailout that they are asking for. The auto bailout has been debated for weeks with many in favor and others opposed. The fact of the matter is the United States simply can not afford to loose any more jobs.
The month of November was a terrible month for the job market. More than 500,000 United States citizens lost their jobs due to the uneasy economy during the month of November. The loss or failure of any of Detroit’s automakers will cause further job loss to the tune of 2,000,000 workers many speculate. The repercussions will be felt all over America should this come to happen.
As citizens, I think we should support our last manufacturing industry that still exists in our country. The automakers also need to rethink the way they sell cars. Too much emphasis has been placed on manufacturing gas guzzling trucks and sport utility vehicles otherwise known as SUVs. Foreign manufacturers have been focusing on making more economic vehicles like the Toyota Prius. The very popular Toyota Prius is a gas/electric hybrid car which gets almost 50 mpg according to Toyota. Toyota’s Lexus brand was among the first to sell a hybrid sport utility vehicle. The Lexus 400h hybrid was introduced to the market in 2004. General Motors and Chrysler have been late to jump on the hybrid bandwagon.
During the recession of 2001, K-Mart was on the verge of bankruptcy. Badly beaten by Wal-Mart, K-Mart was forced to restructure its business. After joining forces with Sears, K-Mart was eventually able to come out of a major hole. Their stock that had once plummeted to $1 per share was at one time trading up to $100 per share. If General Motors and Chrysler could follow the same path as K-Mart, the American economy will be a much stronger one.
It looks like congress has approved the auto bailout plan for the big three US automakers. The House of Representatives is lacking their vote, but it is quite likely that the automakers will get part of the bailout that they are asking for. The auto bailout has been debated for weeks with many in favor and others opposed. The fact of the matter is the United States simply can not afford to loose any more jobs.
The month of November was a terrible month for the job market. More than 500,000 United States citizens lost their jobs due to the uneasy economy during the month of November. The loss or failure of any of Detroit’s automakers will cause further job loss to the tune of 2,000,000 workers many speculate. The repercussions will be felt all over America should this come to happen.
As citizens, I think we should support our last manufacturing industry that still exists in our country. The automakers also need to rethink the way they sell cars. Too much emphasis has been placed on manufacturing gas guzzling trucks and sport utility vehicles otherwise known as SUVs. Foreign manufacturers have been focusing on making more economic vehicles like the Toyota Prius. The very popular Toyota Prius is a gas/electric hybrid car which gets almost 50 mpg according to Toyota. Toyota’s Lexus brand was among the first to sell a hybrid sport utility vehicle. The Lexus 400h hybrid was introduced to the market in 2004. General Motors and Chrysler have been late to jump on the hybrid bandwagon.
During the recession of 2001, K-Mart was on the verge of bankruptcy. Badly beaten by Wal-Mart, K-Mart was forced to restructure its business. After joining forces with Sears, K-Mart was eventually able to come out of a major hole. Their stock that had once plummeted to $1 per share was at one time trading up to $100 per share. If General Motors and Chrysler could follow the same path as K-Mart, the American economy will be a much stronger one.
Labels: auto industry bailout, Chrysler, general motors
Credit Card / Financial news blog post by Todd Holliday at 7:48 PM 