U.S. Auto Industry Stalls
CBS News
Transcript
the Model T ever since the Model T hit the dusty streets in 1908 us automakers have been the backbone of America's manufacturing economy selling 90% of the cars on the road just 30 years ago but that was then this is now showrooms are empty and dealers are desperate to unload their unwanted stock the cars that the big three have offered Americans generally don't like car sales in the US are at a 25-year low forcing many dealers to offer as much as $115,000 discounts on 2008 SUVs and trucks even Toyota is offering incentives for the first time just one more sign America's Auto industry is running on fumes these companies are are in really Dire Straits General Motors is burning through money it has about $16 billion doll on hand but warns it may run out of cash in the next 45 days if one of them goes bankrupt there's going to be a tremendous tremendous ripple effect that Ripple could include as many as three million jobs if one or more of the big three fail I think it's rhetoric Dan ion disagrees he estimates only 200,000 jobs are at stake and sees bankruptcy as the best option and once that happens The Fortunes of the other two producers will improve bankruptcy ianson says could allow them to renegotiate contracts Union mandated health and salary deals make the big thre's workers at an average of $74 an hour the highest paid in the country their Japanese counterparts offer their non-unionized American workers just $47 GM Chrysler and Ford have made very bad decisions with respect to the products they've made over the past couple of decades uh and with respect to the way they've dealt with their labor relations problems of bailout can't solve we are still going to see job Cuts even if the government steps in a dire prediction for an industry that once ruled the road Michelle Miller CBS News New York