Released: November 18, 2008

Automakers say millions of jobs may vanish

Source: Sharon Silke Carty & Barbara Hagenbaugh, USA TODAY

When the heads of General Motors (GM), Chrysler and Ford Motor (F) and their major union go to Capitol Hill on Tuesday, they will try to convince lawmakers that if the Big Three automakers go under, the fragile U.S. economy will be dealt a blow far costlier than the $25 billion in aid the companies want.

There’s no question the automakers are in dire straits. Without federal aid, or a sales rebound that no one is forecasting soon, at least one of them could have to file for bankruptcy protection. GM has said it’s just a quarter or two away from running out of cash. It told dealers it will delay their reimbursement for rebates and incentives due next week, a sign cash flow problems are deepening.

he question legislators, pundits, lobbyists and taxpayers are asking is: If we let these guys fail, how bad will it really be for the economy?

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