The Lordstown Assembly plant defines the tiny village of Lordstown. Sitting off the Ohio Turnpike, the western end of the two mile long complex is festooned with colorful five story banners featuring the cars made there. The biggest banner shows a red 4-door car surrounded by the words the "Cruze is Coming." It was just August when Lordstown Mayor Michael Chaffee heard GM's CEO announce a $350 million investment to build the fuel-efficient Cruze here in 2010.
Michael Chaffee: We were obviously riding very high on that and then in the middle of September the economic crunch hits and the market drops out of car sales and now we're scrambling, now we're faced with looking at the possibility of what happens if General Motors goes under.
Lordstown Assembly makes up nearly 70 percent of the village's tax base. And that doesn't include tax revenue from workers at four nearby parts suppliers, a car hauling company and other spinoff industries. GM's CEO told Senators in Washington, DC this week that the company is months away from running out of cash and wants help. Chaffee worries what will happen if GM and the plant here go under.
Michael Chaffee: We would drastically have to change, obviously, the way that we do business. We'd have to probably cut our workforce by 70, 75 percent too.
But it's not just Lordstown that would be impacted. Workers like Marisol Gonzalez commute to the plant from towns nearby. The 41-year-old came to an emotional meeting at her Lordstown union hall to hear the latest news on the future of GM.
Marisol Gonzalez: I have two kids. Mortgage. Car. We have a good life. I just...its hard to think about...not having it...Its not only us. Lordstown, Youngstown... the car industry, this is all we have.
The Mahoning Valley Chamber of Commerce estimates that the Lordstown Assembly plant creates 1.5 additional jobs for each plant worker, more than 12,500 jobs generating $474 million in income. And, the Chamber's Helen Paes says, auto workers spend those dollars at local businesses.
Helen Paes: We looked at restaurants and eateries, housing, entertainment, apparel and other services and obviously the impact is just enormous in the millions and millions of dollars.
But some economists question whether a bailout would solve the auto industry's problems or - at tax payer's expense - just delay them. Roy Brooks teaches finance at John Carroll University. He says Chapter 11 bankruptcy would allow US automakers to slim down high cost union contracts, pension and health care plans and agreements with local auto dealers.
Roy Brooks: It's their only way to get rid of a lot of legacy costs that they have - and it'll hurt a lot of people - but that they are just not viable and cannot compete with the other major automakers that are non-US automakers, like the Hondas, and the Toyotas of the world at this point.
In Lordstown, Mayor Michael Chaffee remains optimistic about his town's future. The part-time mayor also works as an English teacher in the local schools.
Michael Chaffee: I think our plant is positioned very well and I think at some time the government will give us a boost. I just think economically it doesn't make sense not to do that.
But this week, pleas from the auto industry's top brass left DC lawmakers unmoved. Ohio's senators are working on a compromise bill and are hoping to bring back politicians to discuss it in early December. If that fails, the auto industry, and the Mahoning Valley, will have to wait to see what President-elect Barack Obama will do after he is sworn in in January. Mhari Saito, 90.3.