The big three were making progress. They all have vehicles that will hit show rooms in late 2009, early 2010 that are more fuel efficient, safer, and of better quality. Remember it takes 3 to 5 years to bring a new vehicle into production and 7 years the redesign and build a new power train. The big three have made progress with the union contracts. The changes take effect and the saving start to show in 2010. Remember the union contracts are only negotiated every four years. So change takes time here also. And with the current labor laws in place the union has the upper hand, for management to make the union change it way is very difficult.

The big three have far fewer employees today, fewer plants, and better products, and this was achieved with out massive layoff or cuts in benefits.

So now the big three find themselves within 12 – 18 months of a bright new future and need some credit to make it make it to that day. But credit is not available. Not just to the big three, but to everyone. When the President went to congress requesting 700 billion dollars because the credit systems had stall and the money we need to make this system go again the talk was about businesses that need credit to make payroll, the build up inventory, and to pay the bills. Well GM, Ford, and Chrysler are some of those businesses.  

Now what cause credit to dry up? Was it the big three? No. Credit has been frozen because the Federal government allowed and in some cases forced banks to make home loans to those who could not afford the mortgage. Then the banks sold those mortgages as assets and when it was believed they were worthless, the banks stopped loaning money. The Federal Government has allocated 700 Billion dollars to get the credit system working again. So far it has not worked.

The Federal Government has give over 180 billion to AIG. They have also guaranteed 140 Billion for General Electric. I do not believe any one know how much as gone to FANNY and FREDY. 25 to 50 billion to three companies that employee directly over 500, 000 workers, effect 3 million works indirectly and countless other businesses does not seem like that much. And compared to AIG at least the big three actually make something.

It has been stated that AIG is too integrated in the economy to be allow to fail, the same for G.E. and the other banks and holding companies. Some say the big three should just go into bankruptcy, that everything would be ok. GM, Chrysler, Ford would not necessarily go out of business. Well let me ask, are you going to buy a vehicle form a bankrupt company.

Also remember the failure of the one or all of the big three cause most if not all of the 500,000 that work for them to be unemployed and lose all health care benefits. This would also cause the hundred of suppliers to go bankrupt and there employees to be put out on street. This will affect every business in Michigan, Ohio, Indiana, Illinois, Missouri, and Wisconsin. It would affect every restaurant, store, and dance studio in all of these states. As well as causing the state and locate governments to lose billions of dollars. Because many of the suppliers also supply to the Trans plants, Toyota, Honda, and others, their business would be greatly affected.

I believe that the big three are deeply integrated into the economy of this country and will affect everyone. 50 billion does not seem like a lot of money to give the big three a little time.

Mark A Urquhart