Nov 11, 2008 3:37 pm US/Central
Quick Bailout For The U.S. Auto Industry?
CHICAGO (CBS) ―
Help may soon be on the way to the ailing auto industry. This week House Speaker Nancy Pelosi will reportedly urge her fellow lawmakers to pass a new bailout bill - one that would give immediate relief to U.S. car makers. It couldn't come at a more critical time. There are worries GM, Ford and Chrysler could go under without it.
CBS 2's Mike Parker reports that it's a dreary, drizzly day on the lot at Jack Phelan Chevrolet in Lyons, and another day of lukewarm business. It's been even worse at as many as 10 other area dealerships. They've gone out of business in the bad economy.
Owner John Phelan is also head of the Chicago Auto Dealers Association.
"We probably will suspect to have some more dealers fall out before it's all over," Phelan said. "My fellow dealers have commented that this is the worst they've ever seen it."
Phelan hopes that Congress will act quickly to bail out the U.S. auto industry. If it doesn't happen, some analysts say one or more of the big three will go under.
"It will be devastating to our country if that ever happened to General Motors or any of the other two manufacturers - Ford and Chrysler," Phelan said.
The experts' worst case scenario if all the big three should fail: at least three million jobs would be lost and the cost to government - lost tax revenues and rising jobless benefits - would reach an estimated $156.4 billion over three years.
One couple was shopping for a car today and they were gritting their teeth.
"His car's not running anymore, so we have to buy one," said customer Amy Merrill.
"Just apprehensive. Maybe before we might be looking at a car with less hesitation," said consumer William Merrill.
Chevy dealer Phelan says the industry is not looking for a handout or for the government to nationalize the big three. He says massive loans worked to save Chrysler years ago and that similar loans could save the entire industry this time.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
The Tattooed Ladies of Hollywood
Click to enlarge
Juvenile Detention Staffers Face Crackdown 32 mins ago
Stumble It!
Reporting
