Just what impact does the impending financial crisis have on the economic woes of the United States and the world today? Well for one, if the big three namely, Chrysler, Ford and General Motors would fold, the impact on the automobile industry will severely dent their economy and push the United States further down the lines of economic catastrophe.
The makers of the original American muscled cars has obviously made the U.S. government stand on their feet, placing one part of their business sector on the crossroads of losing not only in profits but also credibility. The U.S. has always been seen as a source of good business and if these automotive manufacturers should fall, God knows what will happen to the faltering economy of the United States.
It has been openly announced that these companies are seriously contemplating cutting down on jobs. But the question of this move is on whether this will be enough. Apparently it seems that unless any form of financial aid or even some financial savior is to step up, they may not even make it through the year.
“What exposes us to failure now is the global financial crisis, which has severely restricted credit availability and reduced industry sales to the lowest per-capita level since World War II.”
Failure of the auto industry “would be catastrophic,” he said, resulting in three million jobs lost within the first year and “economic devastation (that) would far exceed the government support that our industry needs to weather the current crisis.”