Will GM or Chrysler going under affect you?

[carone0318]

It could possibly affect me. I do not work for either, but I do work in the autmotive industry, but for the one manufacturer who turned a profit last year and is also turning a profit this yr - small profit, but profit none the less.

Being an inventory planner for service parts this could affect us because the suppliers that supply the big 3 are the same that supply us other manufacturers. Granted if one of the big 3 closed, that would leave plenty of time for the supplier to finally make and ship my parts on time, but would they still exist to do that, since we are a much smaller fish in the sea. If they closed I guess we would have to go back to sourcing those parts from overseas again. So, not 100% sure what the impact would be, but there would be one.

 

[HM]

We have a GM credit card with nearly $3000 saved up on it for a car. I can assume if there is a bankrupcy, that "money" will no longer exist. It would have been used last year if any of the GM brands had had a minivan that we liked (no longer making them!). Instead we had to buy foreign for the first time in our lives. We've been loyal GM buyers for more than 25 years.

 

[GoofyGolferGirl]

I have bought GM for years but I am tired of seeing my friends who bought Toyota get a lot more miles and a lot less problems with there cars, so I already decided to buy Toyota next. I thought all these plants were union, were is the union help on the pensions? It would be interesting to add up all the union dues paid over the last 25 to 30 years and add on a decent rate of return and see how much money they would have for retirement. I hate to see people lose their retirement, I always thought that with the union they had to ensure the money was put back for these peoples retirement etc. I guess not

 

[MickeyMomOfThree]

DH and I grew up outside of Detroit, both of our families are still there and both our dad's worked for Ford. (Not doing as bad, but not doing great.) My dad's pension is still ok for now, but without it they have just SS and their house witch has decreased drastically in value, so they are already considering moving to be near or even with us. In the last few years they have lost most of their medical benifits. Still, his opinion is that what needs to happen is bancrupcy--forcing the UAW to start making some serious changes.

 

[mnasmom3]

Notice how many of us or those we speak of are in Michigan?

Oh, yeah, we've been hit. My dh is an engineer and worked for a supplier. Was laid off and can't find work. The people who were laid off in the months before him are still job hunting. The pool of job seekers keeps getting bigger by the day while the job openings are shrinking. There seems to be no end in sight for us. Because of dh's job loss, we're very close to having to file bankruptcy. I never thought I'd see the day my kids would be getting free lunch at school. Both my dh and I are college educated and have the potential to make a great income if only there were jobs! I thank God daily for my very part time job. It's the only reason we've stayed afloat this long but we're sinking fast in a house worth much less than we owe and in a state with no jobs.

 

[SuzyQue]

With the trickle down effect it will affect everybody to some degree. I am really sad for our country. I hope we can pull out of it soon, before more families are affected to higher degree of loss and struggle.

I was going to mention this in my original post, but thought I would wait to see if anyone else mentioned it. There definitely will be a trickle down effect. I'm also worried for my daughter who is a third-year school teacher in a school full of students with parents in the auto industry. If they have to leave the state seeking work, she'll be one of the first to be laid off, and she just bought her first house.

 

[NJGirl]

Dad, Grandfather, and Uncle are all GM retirees....they are wondering what will happen with their pension and benefits. A few other family members have worked for them over the years too. We're pretty much a GM family.

I just traded in my Saturn for a new Chevy in March.

 

[Golf4food]

Our company is heavily tied to vehicle sales. We are already hurting and have had layoffs. If the Big ones go under and suffer heavily because of it, 3/4 of my immediate family could lose our jobs.

 

[disneyvacalover]

I'm from Western NY. We have GM and Ford here and had American Axle which closed last year. My father is a retired GM employee and my brother lost his job at American Axle last year. So yes it will affect me.
But don't be fooled if you think you wont be affected by GM and Chrysler going bankrupt. It will affect EVERYONE in some way. Thousands and thousands more jobs will be lost. Unemployment will skyrocket and the government money saved from not doing the bailout will be spent on health care, food stamps and public assistance for the newly unemployed, not to mention more bankruptcies and the list goes on and on.

 

[SAMANDEM]

Yes. I am a Controller/HR Manager for a family of dealerships near Reading, PA. The dealership has A Chevrolet/Cadillac store, a Saturn store, a Saab store and a Pontiac store. Cash flow is very difficult to manage. Consumers are scared away by all the media publications. Sales are down. Luckily we have a very strong Body Shop that is doing extremely well, but their sales cannot carry the dealership for very long. We are also having issues with floorplan lenders. Our current lender is getting out of the floorplan business and we are having difficulty finding another source of financing. Last year we employed about 250 employees. We are employing less than 100 today.

 

[Inigo]

Gm is the largest employer in our county. If the foundry goes out, schools, stores, housing values, everything is affected.

Our county only has about 20,000 residents.

 

[Sarah'sMomfrom PA]

My husband's job went overseas (to India) in 2004 and the company declared bankruptcy. My husband worked at this job for 33 years and we expected a very nice pension from the company (glass manufacturer)--once they went bankrupt, the pension went to the PBGC (Pension Benefit Guaranty Corporation) and we were lucky to get 1/3 of what he should have gotten. He was 61 years old and worked for the company most of his life and thank God he was eligible for something (had to be over 55 and have worked over 30 years for the company)--we looked at the glass as half full that 1/3 was better than zero. The meeting with the PBGC at the time said that if one more large company went under, so would the PBGC but I can't imagine that the government would allow this to happen (it is not a government agency)--my prayers go out to all of you who have either lost their jobs or are about to lose their jobs. It was heartbreaking to see a person near retirement age trying to find employment.

 

[cbrfan]

My DH retired from GM, as did his father, grandfather and a good number of uncles and cousins. DD works for an auto parts supplier. Unemployment in our county exceeds 16%. If the automakers go under, I'm afraid everyone will feel the impact. There will be a lot of people who are currently paying taxes ending up on state aid. Talk about a giant sucking sound!!

 

[S. C.]

yes- my mother has already been affected, she was a logistics manager for a supplier and they already went under. She is 65, so she really cannot find another job, she lost her pension too. She fortunatly owns her home now, so she has that. Once the unemployement runs out it will be challanging for her to live on just her SS, she just started drawing.

This issue is going to affect so many people. Salesman, part buyers, factory workers from parts to assembly and many more. It is really scary.

I guess it may affect us since we have our van is still under warranty. That said, their supposed bumper-to-bumper isn't covering any of the things wrong with the van (my 1st and last Chrysler) and the service center for the dealership is a 5 star dealership, but absolutely terrible. I wouldn't feel bad if those folks lost their jobs. On the flip side, I worry for the kids and families at the school where I work. Quite a few have parents already laid off. If one of these two companies went under, there would be so many more. Very sad.

Notice how many of us or those we speak of are in Michigan?

Oh, yeah, we've been hit. My dh is an engineer and worked for a supplier. Was laid off and can't find work. The people who were laid off in the months before him are still job hunting. The pool of job seekers keeps getting bigger by the day while the job openings are shrinking. There seems to be no end in sight for us. Because of dh's job loss, we're very close to having to file bankruptcy. I never thought I'd see the day my kids would be getting free lunch at school. Both my dh and I are college educated and have the potential to make a great income if only there were jobs! I thank God daily for my very part time job. It's the only reason we've stayed afloat this long but we're sinking fast in a house worth much less than we owe and in a state with no jobs.

I'm from Western NY. We have GM and Ford here and had American Axle which closed last year. My father is a retired GM employee and my brother lost his job at American Axle last year. So yes it will affect me.
But don't be fooled if you think you wont be affected by GM and Chrysler going bankrupt. It will affect EVERYONE in some way. Thousands and thousands more jobs will be lost. Unemployment will skyrocket and the government money saved from not doing the bailout will be spent on health care, food stamps and public assistance for the newly unemployed, not to mention more bankruptcies and the list goes on and on.

Finally someone that understands what will happen.



DH and I are both retired from GM.

 

[dvcgirl]

Unfortunately, it looks like GM will end up in bankruptcy. Unless the bondholders and UAW start making huge concessions and GM cuts more than the 47K jobs promised.....it will happen. So it's really a terrible situation either way. That's the really sad thing, even if GM emerges from bankruptcy, so many thousands of jobs will be lost and so many cuts made to existing pension plans for them to survive.......it's just a real shame.

I don't think Chrysler will make it at all. This plan to merge with Fiat seems like a desperate attempt to keep the company alive. I think too many Americans will remember the Fiat of the 70s....which were really lousy little cars.

I do think GM and Ford will make it ultimately, albeit as much smaller companies with far fewer brands...and many thousand less employees. I really do feel for the people tied to these companies....whether working directly for them or living in a town fed by the industry. And I can't even begin to imagine how angry I would be if I worked for a company for 30+ years only to see my pension benefits taken away in huge chunks. It's just not fair. I'm sorry you're all going through this.

 

[bucket o' butter]

It will hugely affect us. DH works for Delphi, who depends heavily on GM. in a way, I think these companies (GM and Chrysler) have done this to themselves. Getting money from the government might help things temporarily, but unless things change drastically with management, no amount of money in the world will help in the long run. I really hate getting money from the government because then you are dependent on them. It is kind of like borrowing money from your mother - in - law. She will always be looking over your shoulder to see how you are spending "her" money! They will have to answer to "the white house" for everything. Maybe this is a good thing, maybe not. Anyway, yes it will affect us, but somehow we will get through it. It will probably cut down our Disney vacations though. My thoughts and prayers are with everyone who works for GM or Chrysler.

 

[aka-mad4themouse]

Just a reminder that there is a NO POLITICS policy on the DIS.

You've certainly demonstrated that we can discuss the effect of GM's financial health without going down that road. Let's try continue on that path.

 

[Cendrillon]

I will be out of a job if one of the companies goes out of business, and maybe if either goes bankrupt if the effect on the joint suppliers causes the remaining auto companies to go bankrupt.

I'm very scared for Michigan and the U.S. auto industry. Every day, my coworkers fear for their jobs and many of our friends, people who worked for the company for 30 years or more, were laid off last week. It's very sad and often seems quite hopeless. If the Big 3 can all just last a bit longer, I think Ford will come out of it well and has real promise for the future and I'd highly recommend investing in it.

Whether you know someone in the auto industry or not, please pray for us and support American manufactured products.

 

[Goofy22]

More than likely since my husband is a Dodge mechanic which is a Chrysller product!

 

[luvmikids]

As a fellow Michigander I worry for our auto industry and its employees. I am in the healthcare industry and GM is one of our biggest clients. If they go under, it will also affect the healthcare industry. Lets hope and PRAY that the new CEO makes the best decisions for the company and its hard working people.