Area Development News Desk (11/25/2008)
Seventy-six percent of auto supplier executives from 185 companies say
they support a federal government bailout of General Motors (GM), and
that without the federal help, the resulting downsizing and closures
would result in more than 275,000 job losses. According to a survey by
Planning Perspectives (PPI), an industry consultancy, 71 percent of the
executives surveyed favor a bailout for Ford Motor Company, but only 54
percent support help for Chrysler. Sixty-eight percent of those
surveyed say that a GM bankruptcy would result in downsizing at their
company, with 12 percent saying they would more than likely or
definitely go out of business themselves. Among the executives who
favor the GM bailout, 34 percent feel that the potential negative
impact on the U.S. economy of a GM failure is too great to allow, and
25 percent believe the auto industry deserves the same rescue given to
the financial industry. Of the supply executives who do not support the
bailout, 35 percent say that bankruptcy is a better option for GM than
a government bailout, and another 35 percent feel that GM would get
into financial trouble again and require more money. The survey was
conducted November 20th and 21st among suppliers headquartered in 12
states in the Midwest and South.
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