US auto workers suffer from crisis
Source: CCTV.com | 11-20-2008 13:46Special Report: Global Financial Crisis
As US auto workers face uncertain futures, many are starting to wonder how the collapse of the industry could set off a catastrophic chain reaction in the US economy.
|As US auto workers face uncertain futures, many are|
starting to wonder how the collapse of the industry
could set off a catastrophic chain reaction in the
US economy. (CCTV.com)
Residents in Lordstown, Ohio are preparing for the worst after talks to help the industry stalled.
General Motors plans to cut 850 jobs at its Lordstown assembly plant, roughly a fourth of the workforce. Another 160 jobs will come from the GM fabricating plant.
Residents used to hold high hopes for a congressional bailout of the auto industry, but optimism is fading.
Carl Krawiec, GM Plant Employee, said, "Well a lot of people are kind of nervous, they don't know what's going on."
Lennard Schober, GM Plant Employee, said, "I believe it would really hurt. It would be devastating to this whole area."
Theresa Golden, Diner Owner, said, "If this plant would have close it's going to devastate this area. It's going to devastate all the businesses, the school systems, everything."
Optimism is a little higher in Georgetown, Kentucky, where the foreign owned Toyota plant is based.
Residents say with the success of Toyota's Prius, they believe the company is NOT in the same dire situation as its competitors.
But on Wednesday, Toyota said it would be forced to reduce production in the US to cope with slowing sales.
And there are worries a failure of the auto industry would be a catastrophe for the entire nation.
Jim Graham, President of United Auto Workers, said, "Nationally, shutting down General Motors, Ford and Chrysler are going to affect about 3 (m) million people directly; indirectly the ripple effect is going to be astronomical. That's going to literally drive us deeper into this depression that we're already in."
Democrats had planned to dip into the 700 billion US dollar rescue fund to finance US automakers. But the White House and congressional Republicans rejected the plan.
A bipartisan group from auto industry states is working to cut a deal on a scaled-down aid package.