Report: 3 Million Jobs Lost if Detroit's Big Three Fail
The Center for Automotive Research said this morning that if Detroit's (former) Big Three -- GM, Ford and Chrysler -- fail, it will mean the loss of 3 million jobs across the entire auto sector in the first year of collapse.
Should Detroit production drop by 50 percent -- suppose the failure of one of the Big Three and a merger between the other two and subsequent contraction -- some 2.5 million jobs would be lost, the report says.
"To permit any of the Detroit Three manufacturers to collapse would scar the U.S. economy further at a time when it can ill afford another blow," David Cole, chairman of the Center for Automotive Research, said in a statement. "The likelihood of one or two of the Detroit Three manufacturers ending operations is very real."
GM and Chrysler are in merger talks and are asking the government for money to facilitate the tie-up.
Ford is struggling with a low stock price and a major investor -- nonagenarian billionaire Kirk Kerkorian -- who's dumping all his shares.
-- Frank Ahrens
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