too broke to bury their dead

[southbymidwest]

Originally Posted by Elephant Walk

How so?

In answer to your question, auto makers do not make all of the parts they use to assemble their cars. If they cut production, they cut their orders to suppliers. Their suppliers manufacture these parts all over the country (not just Michigan) and around the world. Smaller orders = smaller production runs = decreased need for workers = reduced hours/reduced workforce. Reduced workforce = less money being spent in the local economy. So that is how a manufacturer of, say, gear shift knobs, in Boise, Idaho, that supplies to the auto industry is hurt by what is going on. Which could impact the local Boise economy.

[RU OX Alum]

Originally Posted by southbymidwest

In answer to your question, auto makers do not make all of the parts they use to assemble their cars. If they cut production, they cut their orders to suppliers. Their suppliers manufacture these parts all over the country (not just Michigan) and around the world. Smaller orders = smaller production runs = decreased need for workers = reduced hours/reduced workforce. Reduced workforce = less money being spent in the local economy. So that is how a manufacturer of, say, gear shift knobs, in Boise, Idaho, that supplies to the auto industry is hurt by what is going on. Which could impact the local Boise economy.

Not only that, but the company who makes the equipment that marks the gear shift pattern on the knobs, and the company that makes the control switches that hold the line up at the right time to be marked, etc. and the companies that sell them will be unable to move product, and start to fail, inevitably, which causes less spending, etc. in those communites, and it's bassicaly a ripple effect. The entire world's economy in linked. If this cycle/ripple effect were to continue unabated, it would eventually effect the entire world, and as it is only one facet of the overall global crisis, certainly the position could be maintained that the demise of an entire city (plus surrounding metro-area) the size of Detroit, MI could unseen effects all over the world.

Plus, dealerships which have been around for years, practically since they've been selling cars, jeeps, etc. have been forced out of business.


ETA: (I actually wrote this as part of my first, longer responce, but I just felt like saying this next line:


I am really uncomfortable with politicians telling auto-makers which dealerships to keep and which to get rid of. Dealerships that have been around for 50+ years are being closed and they were actually surviving and running good businesses. Not to mention, a few even did charaties, etc. And they are forced to closed, because too many of that one type of dealer in the area?? Shouldn't it go to the one who had been there the longest, if anyone has to go, it should be the newer ones, or some how merge them. Either way, mergeing the coporate body with the governmental body and the union group to work toghether for the good of the nation is exacttly the same line Benito Mussolini pitched.

[PM_Mama00]

Originally Posted by KSigkid

I don't know that anyone could seriously argue that Detroit's collapse has only affected Detroit, and I'm not sure anyone in this thread is arguing that. Anyone who has lived in an area with a car dealership knows that the effects have been far-reaching.

Again, I'm not sure anyone here is saying that the citizens of Detroit "deserve" what has happened. I look at the Detroit (and Detroit-area) citizens as, for the most part, victims in this whole thing. This all has come about because of greedy executives, union heads, and political entities, each of whom operated in a way that was doomed to fail at some point. Unfortunately, the people who are bearing the brunt of this are people who had no responsibility for the bad decisions in the first place.

It's a nasty situation.

Thank you. I agree with your post. Except, Kevin did say say Detroit deserved it.