How the decision to bailout the auto industry could affect our area

25 billion dollars; that is the amount of money GM, Ford, and Chrysler are asking from Congress to save their industry. If the feds decide not to bail the car companies out, it could affect our area.

Woody Fordham said, “It’s in a bad state. Car sales across the United States are off.”

Woody Fordham is the general manager at Vann Underwood Chrysler, Jeep and Dodge in Whiteville. He said Congress must bailout the auto industry or our local economy will suffer. The big three automakers, Ford, GM and Chrysler, all have dealerships in our area, which Fordham said employ about 60 to 70 people in Whiteville alone.

“These are not minimum wage jobs. We make a strong contribution to the local economy; the taxes that we pay, the jobs that we offer. So we have a very strong impact,” Fordham said.

CEO’s from the Detroit three begged Congress last week for 25 billion dollars in loans. But congressional leaders said they need more specifics and plans from the automakers.

“We don’t know what they need. That’s part of the problem,” said Senate Majority Leader, Harry Reid.

Speaker of the House, Nancy Pelosi said, “Until they can show us the plan we can not show them the money.”

On the flip side, the dip in car sales has increased business for repair shops, as people are willing to fix up their old cars instead of buying new ones. But Chip Custer of Custer Auto Repair said the meltdown of the car industry could eventually affect his business.

“My concern would be parts, the ability to get General Motors parts if they went out of business,” said Custer.

The CEO’s of GM, Ford and Chrysler, will go before Congress again next month with a plan to save their industry.