18 billion dollars. That's what GM told federal lawmakers it needs to avoid financial collapse. Without it, the automaker won't have enough cash to keep operations running for the rest of the month - much less the next year. Of the three U.S. automakers, GM is in by far the worst financial shape. Sales are down 41 percent from last year, that's the worst decline, say GM analysts, since 1958. Ohio community and business leaders reacted to the restructuring plan by rallying behind GM and American manufacturing. Chris Haydocy, runs a GM dealership in Columbus
HAYDOCY: I guarantee the United States will be the laughing stock of the world if congress does not invest in the engine that's powered middle class America for over 100 years.
Haydocy didn't say whether the federal funds would be sufficient to keep HIS dealership afloat - if it does he'll be one of the lucky ones. In exchange for the financial lifeline, the company plans to eliminate thousands of dealers nationwide - in addition to cutting executive salaries by as much as 30%, selling off less profitable brands like Saab, Saturn and Hummer, laying off as many as 30 thousand employees, and closing nearly a dozen plants.
Matt Sapara is the CEO of the Toledo Port Authority. He calls the federal money an INVESTMENT, not a bailout, because he believes the auto industry provides the foundation for a broader manufacturing sector that will eventually include wind power and alternative energy. Saving GM, he says, is critical to the success of those industries.
SAPARA: In our community we have been very successful in manufacturing. That's what we do - we build things with our hands. We're very good at it and we're getting an international reputation for it. All we're simply asking for is an investment in the immediate future so that we can build on the heritage that we have.
As a sign of just how desperate things are getting, even the United Auto worker's Union has agreed to concessions they had rejected just weeks earlier. Of course, it's too late for some plants - The Moraine plant near Dayton will close its doors for good two days before Christmas - taking with it a number of suppliers for whom GM was their only client. Other plants in places like Toledo, Parma, and Mansfield are also likely to face closures or lay-offs even if the government approves GM's request.
Gretchen Cuda, 90.3