Nov 20, 2008 10:08 pm US/Eastern
Auto Industry Woes Could Impact Many Marylanders
BALTIMORE (WJZ) ―
Treasury Secretary Henry Paulson is describing the financial crisis plaguing the U.S. and the world economy as a once or twice in a century event
Kelly McPherson explains how the uncertain future of the American auto industry is leaving the entire economy stuck in neutral.
Cars are just one piece of the economy, but the ripple effect of a collapse would affect many sectors.
People are just watching and waiting for resolution from Washington.
There are more unsold cars than ever before at the Dundalk Marine Terminal.
"Pull up your pants and pull up your pantsuits and let's go to work and let's rebuild the economy," said Senator Barbara Mikulski.
With no $25 billion bailout passed, Congress has given the Big Three a homework assignment.
General Motors has to outline how government money will be used to modernize and turn around the company. The outline is due Dec. 2.
What is clear is that of the Big Three, General Motors is the worst off. They lost $1-$2 billion a month, and its CEO says it needs four to $5 billion to operate until April.
Norris Ford has been in Dundalk since 1917. The management says if any of the Big Three goes under during this financial crisis, this dealership will be affected.
"Suppliers would be hurt and those same suppliers make product for a lot of the manufacturers. So it would definitely be devastating for the economy and the auto industry in general," said Jeff Grossman, Vice President/General Manger of Norris Auto Group.
That means, despite a competitive industry, dealerships are in this one together, hoping for Washington to make a decision soon to save the million jobs attached to American cars.
All three automakers have agreed to give Congress their plan for the billions of dollars. That means talk of an agreement will not happen until after Thanksgiving.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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