One of the best things about Alabama’s development over the last decade was the surge in automotive plants located in the state. Alabama could boast of landing Mercedes, Honda, Hyundai and a Toyota engine plant. Alabama’s automotive manufacturers were responsible for 48,457 jobs in 2007. That was before the economic situation took a strong trend downward. Will the jobs survive the slump in auto sales?
The credit crisis has automotive manufacturers and dealers hurting. Sales plunged due to tight credit and has already caused one Alabama automotive dealership to file for bankruptcy; the dealership company once boasted sales of $2.5 billion from its Chevrolet dealerships. Now it seeks bankruptcy protection, and in the Reuters story you can read below, you’ll see other dealerships are teetering on the brink.
According to the numbers, Ford sales plunged 34%, Toyota down 32%, GM down 16%, Honda down 24% and Nissan down 37%.
Here’s a story by Reuters on the situation. As you read it, you have to wonder how many of these new jobs might be lost if the economy slips further into a recession.