2.46 million job loss? - Dodge Nitro Forum
Chrysler/Dodge/Jeep News Find out the latest scoop here!

 
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 11-06-2008, 04:13 PM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,847
Garage
2.46 million job loss?

Auto industry collapse would crush U.S. economy: study


Wednesday, November 05, 2008

A leading think-tank has drawn a doomsday picture for the North American auto industry that shows that if Detroit's automakers shrink further - even fail - the U.S. economy would suffer a crushing blow, losing at least 2.46 million jobs in the first year alone.

In a report released Wednesday, the Center for Automotive Research in Ann Arbor, Mich., outlined what would happen in two separate scenarios if General Motors Corp., Ford Motor Co. and Chrysler LLC were forced to scale back or shut entirely.

If all three Detroit manufacturers were to cease operations, the U.S. economy would lose 2.95 million direct and indirect jobs in the first year. Governments would lose at least US$156.4-billion in taxes over the first three years.

If Detroit cut output and employment by 50% to meet ever-shrinking market share, which would mean contraction by two of the automakers, 2.46 million jobs would be lost initially. Governments would lose US$108-billion in revenue over three years, according to the analysis.

"The circumstances are such that either of these scenarios is possible, and indeed one or the other is probable, within the next 12 months," the non-profit think-tank said.

The report bolsters the case that the government of president-elect Barack Obama needs to act decisively to speed up financial aid to the domestic industry.

Its authors argue the newly-elected government of Prime Minister Stephen Harper will also have to get involved if it wants to preserve Canada's auto sector.

"The cost of a failure on a cash basis is a lot greater than the cost of keeping these guys in the game," CAR chairman David Cole said in an interview. "There is a real high sense of urgency in the middle of this. We think that [lawmakers] will recognize that a failure here is something that is just not good in any way shape or form for the economy."


More Here:Auto industry collapse would crush U.S. economy: study

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is online now  
Sponsored Links
Advertisement
 
Reply

  Dodge Nitro Forum > Dodge Nitro News & Polls > Chrysler/Dodge/Jeep News

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Retail Sales To Be 2 Million Lower in 2008. rickaren Chrysler/Dodge/Jeep News 0 10-08-2008 02:46 PM
Chrysler '08 loss $400 million rickaren Chrysler/Dodge/Jeep News 0 09-25-2008 09:17 AM
Chrysler Lost $300 Million Through April, Report Says rickaren Chrysler/Dodge/Jeep News 0 06-30-2008 05:07 PM

Posting Rules  
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome