We've all been hearing the talk of a possible bailout for the Big Three auto industry companies (Chrysler, GM, and Ford), but it also has many asking-- what will happen to the auto parts supply companies?
There are thousands of auto parts companies across our country, and many are based in our own backyard, in Michigan.
Monday night, some Michigan lawmakers held a roundtable discussion with local auto parts manufacturers. The manufacturers all talked about how a Big Three bailout or bankruptcy would effect them. There were about 50 people at the roundtable, held at Bridgman's Eagle Technologies.
All agreed a demise of the Big Three would have a devastating ripple affect on their industry, wiping out even more jobs on top of what they've already lost.
Cutbacks are no stranger to these local auto parts suppliers. They've been tightening their belts for months, even years. “Last year I had 50 employees, this year I have 35, says Jim Codis with Regal Finishing in Coloma.
“It’s getting kind of scary. If they file bankruptcy we're all in trouble,” adds Jim Florian with Baroda’s Quality Mold & Engineering.
Nearly everyone agreed a Big Three bankruptcy would only hurt suppliers more. Most say they want some sort of bailout for the Big Three, but with strings attached.
“I would like to see a loan and a lot of incentives and a lot of management by the government on it,” says Brian Nimtz of Standard Tool & Die.
“There's got to be some cuts from on high all the way down to the bottom,” says Dan Hanson, President of Eagle Technologies.
To stay competitive, some say "legacy costs" for retiree pension and health insurance needs to be cutback.
Others argued more needs to be done to keep auto jobs from going overseas. “And close that loop and bring them back in the United States, that's going to pick up our production, our economy-- and people are going to have a lot more confidence buying products in general,” adds Nimtz.
Michigan State Representative John Proos, along with a spokesperson from Congressman Fred Upton's office were on hand, both taking notes for the folks in Washington, D.C.
“I think the most important thing right now is to make sure we make sure our members of Congress do hold as much accountability, but to pass as soon as we can, some sort of package that would allow the auto industry to bridge towards the new contracts,” says Rep. Proos, R-St. Joseph.
And for these auto parts suppliers, it's solutions, not problems that will take them into the future—solutions that can't come soon enough!
“I’m glad that somebody is finally asking the suppliers, that part of it. I thought there were some pretty creative ideas put out there today, it'll just depend on what happens to be honest with you,” explains Codis.
Other issues brought up Monday night, providing incentives for companies and workers to get education and re-training in a tough market.
Many also agreed there needs to be more oversight on what top auto executives are getting paid, especially in tough times.
Some folks also suggested that the 25-billion dollar bailout be given to the American people, instead of the Big Three automakers. Some say this money could be used to help people buy American cars.
Representative Proos says, bottom line, we need to keep having these conversations and let Washington know what it means for people here at home.