Off topic: Alabama auto industry hurting?

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%.

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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.

4 Comments

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  1. 1
    OMNIPRESENT

    I have a Brother thats High in the accounting Dept. at Honda and its getting Scarey around there he says.I think this country can not get the LEADERSHIP it needs out of the choices we have before us!! He (brother) says
    we can with MCCain I DOnt think so, Obamma is SHIFTY or something But anyway it goes WE ARE SCREWED!! I often wonder if they will BAIL me out if I make some bad business decisions??

    SORRY ABOUT THE POLITICS.. hit home a lil CAP 🙂

  2. 2
    CJ705

    The downturn in the auto industry is all about gas prices and the credit crunch. These are systemic problems, and despite what you hear, this election will not have any short term impact on these problems. Part of the bailout bill includes aid for the auto industry which will help somewhat.

  3. 3
    Pluto

    I work at Mercedes Cap and I go to this site to get away from the incessant shitty news that we are fed on a weekly basis.
    Thanks guy.

  4. 4
    Daddio

    It’s not as if folks couldn’t see this trainwreck coming, they just chose to ignore it. The auto industry has not kept up with the times and knew the days of inexpensive fuel could end at big oil’s whim. Had they been ready with a contengency product, the pain would not be as severe as it is. Now they will be scrambling to survive, but it’s not like they couldn’t see this coming. The marketplace has spoken.

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