Local car dealers want Big 3 bailout

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BY ANDREA HOLECEK
holecek@nwitimes.com
219.933.3316 | Tuesday, November 18, 2008 | (8 comment(s))

Feeling the strain of the nation's financial crisis, some Northwest Indiana car dealers contend a bailout of Detroit's automakers is important to stop unemployment from rising and the economy from worsening.

General Motors, Ford and Chrysler LLC have asked the federal government for a $25 billion loan to help weather the economic crisis, a bailout now being discussed on Capitol Hill.

Tom Van Prooyen, vice president of Merrillville-based Schepel Auto Group, said car dealers -- even those selling imports -- want to see the Detroit carmakers receive some type of federal aid to keep them out of bankruptcy or liquidation.

If the domestic automakers file bankruptcy, it would cause unemployment to increase to the 12 percent to 15 percent range and further erode the economy, he said Monday. He said it also would put a strain on auto parts manufacturers.

In January, auto analysts forecast 2008 sales at 14 million vehicles. The estimate currently is below 12 million, Van Prooyen said.

"No one anticipated this," he said. "It started with the housing and mortgage crisis, and it has put auto manufacturers in a real bind. The credit situation that they weren't part of has come full circle and affected the car business. It has caused more than serious concern and has killed consumer confidence."

Jason Akers, general manager of Highland's Team Toyota, said the wisdom of a Detroit 3 bailout is a "hard call."

"There should be a bailout, but there should be strings attached," he said. "The companies need to downsize...They have to change their business model...But I don't want unemployment to go to 12 to 13 percent, and that's what would happen."

Dale Christianson, an owner of Christianson Chevrolet in Highland, said he doesn't think the public realizes what will happen to the economy if the Big Three car makers don't get a federal loan.

"There will be massive unemployment that will trickle down to the whole economy," he said. "I think that the major reason people aren't buying cars is that they're afraid of their own jobs. The steel mills are laying off workers. Some big retail chains went bankrupt. The economy is in bad shape. Even people working are reluctant to spend money."

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region rat wrote on Nov 18, 2008 7:01 PM:

" I say no bail out...I bought a mustang 2 years ago had numerous problems that never got fixed right, in fact the dealer even told me they had a ton of problems with this model..I had all the intention of buying american..ended up I traded it in on a honda...one year later not one problem sad so now they want us to pay for thier mis mangements and poor quality i dont think so... "

Sandal wrote on Nov 18, 2008 5:26 PM:

" I'm getting tired of the banks and now the auto manufacturers using fear as a reason for a bailout. Once Ford, GM , and D-C cease to exist in their current form, things will improve.

Honda and Toyota can come in and take over to run a business the way it should be. Worried about "imports", Toyota has plants in Indiana that use Indiana workers and Indiana steel with Indiana parts.

If the Big 3 get a bailout, I would like to see everything up for negotiation. The unions, once very important to protect workers rights, have become a thorn in the side and need to be the first on the chopping block. "

Give but... wrote on Nov 18, 2008 3:54 PM:

" Give it to them but only if they agree to start producing more flex fuel vehicles. The technology is there, The Big Three need to start pushing out more FF vehicles so we can become less dependent on foreign fuel. "

Fred wrote on Nov 18, 2008 3:43 PM:

" here's how it will go, even if the automakers don't get a bailout, they will: declare bankruptcy, dump their legacy costs,and void the contract with the UAW. The same powerstructure that got them into this mess will still be in place except for a few sacrificial lambs for cosmetic purposes. Pensions will be administered by the PBGC meaning they(pensions) will be a fraction of what they were supposed to be while the BOD's pensions which were probably privately insured will be 100% intact. "

George wrote on Nov 18, 2008 3:35 PM:

" Everyone wants bailouts now. Let the car companies fall, then re-build the organizational unit without the unions. The unions have destroyed manufacturing jobs in this country and it is time to re-claim the industry. "

Recovery Money wrote on Nov 18, 2008 12:22 PM:

" Loan them the money, ONLY with strings attached. Like no executive bonuses, and in some cases, ask for their resignations because of their poor performance, and Unions must also make concessions in work rules and benefits. "

Ed wrote on Nov 18, 2008 8:31 AM:

" American car buyers have been bailing out the Big 3 and their evil distributors for about 20 years now!!! "

Willliam Ridgely wrote on Nov 18, 2008 7:21 AM:

" Now it's the car dealers! They want the taxpayers to bail them out. The owners of dealerships have made millions in good times and now they want me and my fellow citizens to help them?
The domestic automakers should file bankruptcy like anyone who can't pay their bills.
The people of this country should not get in the business of owning automakers. "

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