Gettelfinger: Bailout collapse means suppliers may cut off automakers

Source: Detroit News

The collapse of emergency aid to Detroit's struggling Big Three automakers could prompt suppliers to cut off deliveries and start demanding cash payments up front from the strapped carmakers, according to the president of the United Auto Workers.

Ron Gettelfinger said he talked to General Motors Corp. CEO Rick Wagoner and Chrysler LLC President Tom Lasorda this morning, and that their biggest concern is whether suppliers will stop delivering parts or require payment upon delivery or in advance if they think federal aid is not coming.

"We need to satisfy the suppliers that there is going to be a tomorrow," Gettelfinger said. "If suppliers believe they can't operate, what are they going to do? They aren't going to deliver the goods."

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Read more: http://www.detnews.com/apps/pbcs.dll/article?AID=/20081212/AUTO01/812120424/1148/AUTO01

........guard.

fire the top brass and the boards and start from scratch. We need auto manufacturing in this country, don't let it die.

the towns went up around the plants.
Some people just don't get how big the auto industry is.If the big three go the whole economy of the world begins a death spiral and try to recover from that.
Think about what you are saying to 3 million Americans?Think about what you are saying about manufacturing in general.What kind of country doesn't make anything?A third world country.

I live in Toledo. At the turn of the century, before automobiles, we were a big manufacturing center for many things, and had one of the largest bicycle plants in the country. Edward Drummond Libbey brought glass manufacturing to the city in 1883, long before the auto. We have a long history in the glass manufacturing business. Willys Overland came here and the Jeep was produced here for WWII. Jeep has gone through many ownerships, and is now owned by Chrysler. It is one of the major employers here.

http://www.willysoverland.com/index.php/WO/history/ - timeline of the company

GM has PowerTrain transmission plant here.

http://abclocal.go.com/wtvg/story?section=news/local&id=6539949 - third shift idle until February - if then. GM has sunk over a BILLION dollars into this plant, while it closed others, as it is their Best PowerTrain plant.

Chrysler has a parts plant. Ford had a plant but it closed a couple of years ago. Libbey-Owen-Ford Plate glass (auto windshields a major output) was here. Champion Spark Plug was here. These industries came here after the automobile was invented. Toledo was not poor - it did sustain itself. The Dana Headquarters was here until recently - they moved out (transmissions). All of these companies employed Toledoans and produce/produced TAX revenue for the city. We are already in a big deficit hole for the coming year, and I don't think we've seen the worst of it yet. The whole state of Ohio is in crisis at the moment.

As bad as it will be here, Detroit proper is a ruin. Have you ever been in downtown Detroit? It's one of the ugliest saddest places I've ever been and is a shadow of its former self.

Yes, the downturn of the auto industry will affect whole towns and will be extremely difficult here. I am not looking forward to it. Our roads are half crumbling to dust now because of lack of tax revenue to repave them. Toledo should have reinvented themselves a long time ago. Whose fault is this? The auto companies? Toledo's? The workers? The unions? I don't think you can point the finger at just one cause of all of this.

I myself blame whoever started the real estate speculation that ruined this nation's economy in a twinkling. I hope the rich people are happy with their fat Cayman Island bank accounts while the rest of the country is suffering.

How many people will be homeless? How many houses will be empty and unpaid for while their previous owners are living in a car somewhere? How bad will it have to get for the uber-wealthy will notice that there's something wrong? How long will it take before they all give a shit? Will they EVER give a shit?

The blame lies in many places, but it will be the people who suffer. Hope you have a secure job.

BTW, Toledo voted 65+% for Obama in the recent election. McCain only took a couple of the wealthy suburbs here.

That it is getting very hard for them to get financing because they are considered a much higher risk now that their main customers are almost bankrupt..Looks like a domino effect is about to occur. If I recall correctly some of the suppliers mentioned were Goodyear, RC Delco, Borg Warner, and Texas Instruments...