Congress to Decide on Big Three Auto Bailout; Millions of Automotive Jobs at Risk; AutomotiveCrossing Promises to Speed up Efforts

December 10, 2008   |    PDF version

Pasadena, CA — Millions of automotive jobs are in danger of getting slashed, if the US auto industry collapses, according to a recent study by the Economic Policy Institute (EPI), a non-profit firm based in Washington DC. This dismal job report is expected to get real and happening, if the Big Three of the automotive industry which includes General Motors, Ford Motors, and Chrysler, close down. The Congress is yet to decide on the bailout amount for keeping these companies afloat. The whole automotive industry is struggling, unable to bear the pressure generated by the overall downturn.

''The auto industry is in a terrible state, and jobs are being cut at an alarming rate to support the deteriorating bottom lines of automotive companies, especially the Big Three'' says Harrison Barnes, CEO of AutomotiveCrossing, a leading job board for automotive professionals.

Some months back, General Motors, the largest automotive company in the US, announced a major cut of about 20% of its workforce in order to increase liquidity by around $15 billion. This time around, it is trying its best to survive, along with Ford and Chrysler. GM recently announced a round of cuts affecting 2,000 automotive jobs all over the US and also issued a candid apology referring to its previous blunders that might have rendered itself bankrupt.

The US auto industry clock ticks towards bankruptcy and lawmakers are working at record speed to get the Big Three, the bailout the industry desperately needs. The automakers jointly pleaded for $34 billion to advance their restructuring plans and get out of the rot. But the Congress is still skeptical that the big three Detroit dealers, if given money, won’t come back later requesting more funds. Lately, The White House and Congress were struggling to reach agreement on an overseer, to monitor the proposed $15 billion in bridge loans to General Motors, Chrysler, and Ford.

Barnes says, ''The auto industry is going through its worst phase ever. The fate of millions of auto jobs hangs in balance over the decision of the Congress, and I hope they take the right decision.''

As the rescue package is near its completion, a study by a non-profit think tank company, Economic Policy Institute revealed that in the event of the collapse of the auto giants anytime, a total of 3.3 million automotive jobs could be lost. More than 400,000 jobs are estimated to be eliminated in the automotive spare parts industry alone. Here are the statistics of the automotive jobs in various US states which are in danger of getting wiped out:

• Automotive jobs in Michigan (up to 407,300 jobs)
• Automotive jobs in Ohio (up to 219,100 jobs)
• Automotive jobs in Indiana (up to 147,300 jobs)
• Automotive jobs in Pennsylvania (up to 120,000 jobs)
• Automotive jobs in Tennessee (up to 106,400),
• Automotive jobs in Alabama (up to 76,100 jobs)
• Automotive jobs in Kentucky (up to 75,000 jobs)
  

''These are the toughest times for auto industry workers. But all is not lost; many sectors depend on this industry for survival, and they will do their best to get the industry out of the mess. With respect to the job losses, the best solution which I can offer is to look for jobs where they really are. There are still many automotive jobs out there and AutomotiveCrossing wants to find them all,'' says Barnes.

Unlike other job-search and career sites, AutomotiveCrossing weeds out spam and jobs outside one’s niche, allowing job seekers to search efficiently and specifically. The number of automotive jobs present in the database is expected to get an additional boost in the coming days. For more information on AutomotiveCrossing, please visit www.automotivecrossing.com.

Contact:
Mary Wilson, Editorial Coordinator
Automotive Crossing
626-243-1821
mary@employmentcrossing.com

About AutomotiveCrossing
AutomotiveCrossing is an affiliate of EmploymentCrossing, a powerful and comprehensive organization dedicated to helping professionals find jobs that will enhance their careers. AutomotiveCrossing consolidates every automotive job opening it can find at one convenient location. The website also offers a seven-day free trial to new members.