uh oh, chrysler closing ALL plants for 1 mos

[Papa_Complex]

Originally Posted by ducati_atx

1M jobs (as proclaimed by the auto industry) vs a country with 300M+ people? Not the end of the world.

Is that DIRECT jobs? The latest estimate for just the Province of Ontario is that up to 500K jobs could be lost, in both the auto makers and the attendant supply chain (parts sub-contractors, dealerships, etc.).

[ducati_atx]

Originally Posted by Papa_Complex

Is that DIRECT jobs? The latest estimate for just the Province of Ontario is that up to 500K jobs could be lost, in both the auto makers and the attendant supply chain (parts sub-contractors, dealerships, etc.).

That was the auto industry's rollup for all primary and supplier jobs if the big 3 folded. I could look up the exact number and quotation if you wish. From memory it was ~1M jobs.


Edit: I also dont believe that just because a company goes into bankruptsy protection means that it will completely fold operations up. companies do it all the time. It however will mean that they can renegotiate their union contracts as well as stop paying benefits to former employees.

[ducati_atx]

Originally Posted by ducati_atx

That was the auto industry's rollup for all primary and supplier jobs if the big 3 folded. I could look up the exact number and quotation if you wish. From memory it was ~1M jobs.


Edit: I also dont believe that just because a company goes into bankruptsy protection means that it will completely fold operations up. companies do it all the time. It however will mean that they can renegotiate their union contracts as well as stop paying benefits to former employees.

check out this:
http://economix.blogs.nytimes.com/20...the-big-three/

[Rsv1000R]

The study, which came out on Election Day, estimates “the economic impact — in terms of jobs, compensation and tax revenues — of a major contraction involving one or more of the Detroit Three automakers,” under two separate scenarios. In both cases, there would be major short-term shocks to employment; depending on which scenario you use, a contraction of the Detroit Three would result in direct and indirect job losses of 2.5 million to 3 million in 2009. (This figure was also cited by Governor Granholm.)

That statistic is nowhere close to 1 in 10 American jobs, but it’s nothing to sneeze at.

And C.A.R says that 40-59% will have their job back by 2011, course that means there's still over a million out of work collecting benefits, as well as all of the retired workers who lose their pension, that we'll be paying for.

[ducati_atx]

Originally Posted by Rsv1000R

And C.A.R says that 40-59% will have their job back by 2011, course that means there's still over a million out of work collecting benefits, as well as all of the retired workers who lose their pension, that we'll be paying for.

or we could continue paying them billions and billions of dollars to subsidize their losses. Perhaps we should just put huge tariffs on foreign auto imports so that we dont have to change a thing and pass the cost on to american people while we're at it.


This isnt a short term gig - the Big 3 have been pretty good at losing money well before the credit crunch and house bubble.


BTW: Im not alone in my belief that people dont support a bailout of the auto industry. Heck, > 1/2 of our reps voted against the bailout plan for them - and that plan was only to hold them over til Q1.

[Rsv1000R]

Originally Posted by ducati_atx

or we could continue paying them billions and billions of dollars to subsidize their losses. Perhaps we should just put huge tariffs on foreign auto imports so that we dont have to change a thing and pass the cost on to american people while we're at it.


This isnt a short term gig - the Big 3 have been pretty good at losing money well before the credit crunch and house bubble.

We haven't paid anything yet, and if they close it definitely will cost money, if it's a loan, and they can restructure their labor costs I think they can make it. But restructuring their labor will move the retires over to the federal program (or at least I believe it will). So that's going to be a wash.

[ducati_atx]

Originally Posted by Rsv1000R

We haven't paid anything yet, and if they close it definitely will cost money, if it's a loan, and they can restructure their labor costs I think they can make it. But restructuring their labor will move the retires over to the federal program (or at least I believe it will). So that's going to be a wash.

The problem is that people in congress who actually see their financial statements and do this for a daily basis now-a-days dont believe they can "make it."

In addition, the UAW has already said they wont take a pay cut cause it isnt their fault. Not sure how they get labor under control when their labor pool says no.

[Papa_Complex]

Originally Posted by ducati_atx

That was the auto industry's rollup for all primary and supplier jobs if the big 3 folded. I could look up the exact number and quotation if you wish. From memory it was ~1M jobs.


Edit: I also dont believe that just because a company goes into bankruptsy protection means that it will completely fold operations up. companies do it all the time. It however will mean that they can renegotiate their union contracts as well as stop paying benefits to former employees.

It would be good to see the actual quote, if possible. Just think though; based on your number that's 1M fewer people paying taxes and receiving an income, with the attendant drain on unemployment support. That's 1M possible foreclosures on property that is worth far less than it was, with little chance of recovering the financial outlay from institutions that cannot take that strain.