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








