Auto Industry Collapse

The auto-industry is facing a crisis in which the major auto-makers are falling short of their normal profits and are quickly descending into bankruptcy. These auto-makers are depending heavily on the United States government to create a rescue plan that will boost them out of their current financial state and give them ability to secure themselves.

The proposed $14 billion dollar bailout package failed last week in senate. The Senate Republicans had a disagreement with the UAW over wage concessions. It is important that the U.S. government does create a bailout package that would pass because if the auto-industry falls, it will have a major impact on our society.

GM has announced that it will slow production at 14 plants in the first quarter of 2009 and it will make 250 000 less vehicles than already determined.

The auto-suppliers are now in trouble due to the auto-makers collapse. Many other businesses are toppling too, in a chain formation. The collapse of this industry will mean dire consequences for many economies and countries around the world. The United States government and the auto-makers need to resolve this issue and create a quick and effective solution to the problem.