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Ailing Auto Industry Concerns Heartland Workers Save Email Print
Ripple effect could impact Nebraska employers
Posted: 2:45 PM Nov 17, 2008
Last Updated: 4:42 PM Nov 17, 2008
Reporter: Bryan Latham
Email Address: sixonline@wowt.com

A | A | A

Troubles in the U.S. auto industry have those companies looking for answers. Will it be $25 billion in loans? Is money from a financial bailout a good solution? It has many in Omaha wondering about the future.

The auto industry extends from manufacturers to repair shops. Charlie Velinsky has owned AAMCO Transmission at 60th and L streets since 1965. "Automotive is a factor in everybody’s’ life, everybody has a car, everybody."

Charlie's job is car care, but he can't make cars run without parts, parts he gets from companies like General Motors.

"At times I feel they should let them go. At times I feel no, we can't do that. It's going to affect us too down the line when we run of a material. Who is going to supply us?"

At Certified Transmission, they remanufacture parts. "The automotive industry definitely needs some kind of help of some sort,” says owner Peter Fink.

Fink isn't sure of the bailout plan, but says something needs to be done. "The automotive industry touches so many different people in different ways. If you think about it, just tires from Firestone or Goodyear to whatever, here are after-markets. To when you get your car to when they build a car, so many different jobs."

His company employs hundreds and Fink has concerns over the future of the industry. "I don't think anybody's ready to quit driving yet. So we won't be working on as many as those, but I'd hate to see us go to an offshore or different country to supply that need, so in essence yeah, Certified Transmission could maybe go away, too."

At H&H Chevrolet, owner Steve Hinchcliff agrees something has to be done about the state of the automotive industry, but doesn't put all the blame on auto manufacturers.

"Just before $4 gas, GM was back in the profit category and their turnaround plan was working. Neither their turnaround plan nor anybody’s included $4 gas."

Hinchcliff added since the price of gas dropped, sales picked up on some of the trucks and SUVs.

If Detroit goes under, it would definitely be felt in the heartland. The Census Bureau says 4,000 Nebraskans work in companies supplying parts to auto manufacturers.

About 500 people are employed at a Tenneco plant in Seward, making original equipment emissions parts. Another 500 people work at a Monroe shock absorber plant in Cozad and about 1,400 work at Eaton and Baldwin filters plants in Kearney.

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Posted by: LLR on Nov 18, 2008 at 10:45 AM
Filing Chapter 11 would allow the companies to continue in business, only under the watchful eye of the bankruptcy court. This is how companies have restructured for years. Sorry, but if Ford, GM and Chrysler hadn't been held hostage by the UAW lo these many years, they might not have found themsleves in this predicament today.

Posted by: TJ on Nov 18, 2008 at 09:35 AM
Get rid of the unions and quit paying the workers an outragious salary. When will I get bailed out in this economy?

Posted by: Kevin on Nov 18, 2008 at 08:03 AM
It would be less disconcerting if any of the companies mentioned in the bailout plan had any concept whatsoever about making profit in the automotive industry. As an employee of two successful Asian imports - I for one would love to see the big three left to fail. Let the market take care of itself and let those who embrace profit and fairness prevail!

Posted by: Bob on Nov 18, 2008 at 02:23 AM
Let them fail! Let the chips fall where they will. The factories will all still be there when this is all done. GM with reorganize, rehire the workers, retool the factories like they should have 20-30 years ago and the consumer will get cars that are actually worth a crap and get better than 20 mpg.

Posted by: Laura on Nov 18, 2008 at 12:00 AM
So where do these bailouts end? The automakers need to retool agreements made with extortionists - err - unions, and bring their expenses back into line of what is reasonable. If they fail, someone will be there to fill the gap with an affordable, fuel efficient product. This is the nature of business. It is not the government's job to prevent business failure, especially when that failure is due to poor management and manufacture of a product the public does not want and cannot afford.

Posted by: Mary O. on Nov 17, 2008 at 09:11 PM
Sorry, as I said in another posting, you reap what you sew. Sorry so many will have to lose because of this, but businesses are not children & our govts are not parents. Using this analogy, it's no wonder our businesses are failing miserably.... their "parents" don't even hold themselves accountable. It's time to stand up, wipe off the cut, put a bandage on it and say, "We screwed up and we're going to take responsiblility and fix it." Think of it as a great opportunity to succeed by doing the right thing next time around.

Posted by: ranter on Nov 17, 2008 at 08:38 PM
GM screwed up 20yrs ago when they ditched the EV1 program. They sold out to the oil companies and kept building gas eaters indtead of investing in green and zero emission thechnology. The Volt is a piece of junk, and it shows how near-sighted they really are as a company.

Posted by: anonymous on Nov 17, 2008 at 07:30 PM
I agree with Janet except for one thing: these companies are making closer to $80 an hour. Foreign companies are paying about $35 an hour for more durable automobiles. Wonder why they are not struggling.

Posted by: Brian on Nov 17, 2008 at 06:27 PM
To Ford Blue Oval: No, I'm not stupid. Just tired of bailing out all the idiots who didn't do it the right way. They used to say that GM and Ford make $20,000 profit on $40 Suburbans and Excursions. Maybe they should have utilized all those billions they made for times like this. And actually, the foreign companies will be better off with the big 3 meltdown because people will be forced to go to them for new vehicles. Screw the corporations...it's karma for screwing the people for so long. Let if fail.

Posted by: DDB on Nov 17, 2008 at 05:57 PM
The car industry created this situation by not being leaders in their field. 25 billion dollars will not save them because their product is not worth buying. Once you lose your reputation for quality it is hard to regain those lost customers. The big three never learned that lesson, greedy managers, greedy workers, and greedy public representatives is what helped cause this problem, let's not reward bad behavior.

Posted by: Anonymous on Nov 17, 2008 at 05:44 PM
Face it, autos are a durable good and people who work in that industry need to realize that it will have ups and downs. People don't buy cars like I buy 2 gallons of milk every week. People can, and are, going longer with their current vehicle. Also, cities across the country are planning large scale transit projects which will compete against cars. The automobile has reached its peak in the US, its only downhill from here for them.

Posted by: Ford Blue Oval on Nov 17, 2008 at 05:28 PM
To all who dont want the bail out are you all that stupid? Think of the fallout throughout the industy...its not just about Ford Gm or Chrsyler ohhhh no its about everyone from tansmissionshops to dealers to even small little you! If you think the foriegn companys are that much better well keep dreamin because they will get hit too if these companys go under. Be smart America write and ask for this bailout because if you think America is bad now just wait and see what happens if Gm fails!!!!!

Posted by: tbuckley on Nov 17, 2008 at 04:54 PM
Lets take a look and what these guys who ran this industry into the ground got for bonuses the last few years.

Posted by: janet on Nov 17, 2008 at 04:42 PM
if people on the production line were not getting paid $50 a hour maybe a truck/car would not cost $40,000. This is a on going problem in America. The unions crank up the wages and the companies pay employees an ungodly amount for fear they will go on strike. Currently some automakers are paying employees to stay home. I do not feel we should be bailing out the automakers. The companies and the unions need to get together and come up with a plan---if the employees want to work they will find a way to work this out without a goverment handout. Too many corporations think they can screw up and the goverment will fix it, Look at the banking/morgage mess--they are asking for help and a bailout, yet the CEO's and VP's are still getting bonuses and golf outing??????? Our goverment needs to make these companies accountable for their mistakes before bailing them out

Posted by: ToddM on Nov 17, 2008 at 03:48 PM
I don't want to bail out the industry. The plan being pushed by Nancy and Harry and Obama are paybacks to the unions. They own the Democratic Party and it's showing. I'm all for Chapter 11 and clean some of this mess up. The foreign car manufacturers in this country (sounds funny) aren't having this issue. The difference? Better cars, no unions with sky-high benefits, executive officers with better foresight to their business than their counter-parts in Detroit. Time to clean up your own mess.

Posted by: Bill on Nov 17, 2008 at 03:12 PM
Of course the Big 3 American auto dealers will get a bailout. Congress loves to give out money to self-made failures. The hand writing was on the wall in the late 1970s after the oil embargo. The US needed to retool factories to produce more fuel efficient vehicles. What did we get? We got SUVs, half-ton and ton pickups and automobiles that get 15 mpg. The automakers got a big markup, large quarterly earnings and big checks to its stockholders. Little to none of the windfall went to retool factories to make them competitive with the Japanese. I don’t blame the big 3 anymore than I blame the financial sector, the housing sector and the credit card industry. We live in a world of greed and live for today. I call it the reboot syndrome. When things get rough, just like in a video game, all you need to do is reboot the system and all will be fine. The government is the reboot button and they will pay the bills for us and let us over spend another day to appease our greed.

Posted by: LLR on Nov 17, 2008 at 02:58 PM
I think in a free enterprise system some businesses go under and others cut corners and somehow survive. You can't tell me that GM has made all the sacrifices they possibly could to turn the company around. Sounds like the automakers are using the same excuse as consumers...they want an easy fix with the injection of money instead of cutting corners and sacrificing even more than they have. Consumers would rather max out their credit cards than do without something not really related to the practice of survival. I say NO to a government bailout of ANY business!

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