Many people (especially those outside of Michigan) think GM made their bed…They don’t get it. Sure GM has majorly screwed up, but everyone is going to suffer if they go under. Mainly the state of Michigan and the already struggling area of Flint.
The problems Flint will face if GM goes bankrupt have been compared to The Great Depression by Flint Major Don Williamson. The head of region 1-C of the UAW said it would be like “the atomic bomb going off”.
Michigan has always been about automobile manufacturing. That’s been one of the main areas of revenue in this state, but since the 1980s that’s been declining. In the past decade it has been terrible. Numerous factories have closed, headquarters and offices have moved out of the state. This has caused a tremendous domino effect on jobs and the economy.
Without the jobs and the income provided by GM, people have not been able to purchase GM vehicles. That has made GM sales numbers low. That has contributed to GM’s current situation.
GM closed factories, ended jobs, then built factories in countries like India and Mexico. In an article earlier this year GM spent hundreds of millions of dollars building factories in India and were planning to spend more. Hundreds of millions of dollars that should be invested in the American worker and economy since that is the number one consumer target for vehicle sales. Yet GM wonders why the average American isn’t buying their gas guzzling monstrosities. Hmmm…
I’m no expert but it all makes perfect sense to me. You screw American workers out of jobs then sales slip. Simple cause and effect.
Because of that, I am one of those people who would love to say to hell with GM. Unfortunately I live in Flint. A place that’s is already suffering from GM’s troubles. Thousands of GM workers were recently laid off with more lay offs to come in January. If GM goes bankrupt that number could get much larger.
In this area over 7,100 workers are employed by GM plus there are over 70,000 retirees that depend on GM pensions and health plans.
Health plans that are being cut for retirees over 65 as of January 1, 2009. That is crazy. Those are the people that need the health care the most. My mother is going to lose her health care coverage because of this mess.
Everything in this area is connected to or depends upon GM factories, money and GM workers. Taxes paid by GM helps schools and communities, workers spend their GM paychecks at local businesses, GM uses local companies for many services and needs. It’s all connected.
My husband doesn’t work for GM or a company that is connected to the auto industry at all, yet his company does have several big GM accounts that they service. If GM goes under the effect will be so bad my husband’s company will probably have to cut their employee numbers by half.
So whether or not I agree with GM getting a big bailout from Uncle Sam, it has to happen. If it doesn’t things, are going to go from bad to utter devastation fast.
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