Auto collapse would ripple across country [2008-11-20]
Twenty-seven states would lose more than 10,000 jobs each if the domestic U.S. auto industry collapses, with triple that number of jobs likely lost when including parts suppliers, internal documents from the carmakers show.
While the traditional Midwest manufacturing states would be by far the hardest hit, an analysis by The Detroit News of data obtained from General Motors Corp., Ford Motor Co. and Chrysler LLC paint a grim portrait of the economic tidal wave that could spread across the country if Detroit's Big Three don't survive their current financial woes.
CEOs of the automakers and the president of the United Auto Workers received a skeptical reception in Washington on Tuesday from lawmakers who will decide whether to provide a proposed $25 billion bailout to the industry. Yet the home states of the majority of those congressmen would suffer debilitating job losses if Michigan's automakers are allowed to go under.
Advertisement Connecticut, home of Sen. Chris Dodd, who gave automakers a tongue-lashing Tuesday, has 7,330 residents who work for GM, Ford or Chrysler, either for the companies themselves or for dealerships, according to The News' analysis. Another estimated 14,000 are employed in auto parts manufacturing. There are roughly two auto parts workers for every Big Three employee, according to David Cole, chairman of the Center for Automotive Research in Ann Arbor.
Ford has 34 auto parts suppliers in Connecticut, for example; Chrysler has 37, and GM has 211.
While the automakers are often portrayed as a Michigan industry, more than half the states, ranging from the Atlantic to the Pacific and from the borders of Mexico and Canada, would lose more than 10,000 direct auto company and dealer jobs if the Big Three go under; with suppliers added, the number is likely to be more than 30,000 jobs in each of those states.
"People don't realize the economic impact (of the auto industry)," Cole said. "Many of these companies are invisible in their communities. An electronics plant in California may make parts for numerous products, but their main customer may be the automakers. If the automakers are allowed to go under, suppliers lay off workers."
Ford, for example, pumped $3.7 billion into the Kentucky economy in 2007 through purchases from suppliers in that state, according to a document obtained by the News from Ford. Alabama manufacturers got $2 billion from Ford; North Carolina, $771 million; Tennessee, $914 million.
A doomsday scenario would put 157,000 Michigan residents currently employed by the Big Three out of work, plus an estimated 300,000 more who work for auto suppliers.
That's more than 10 percent of Michigan's work force, even before spin-off jobs are considered.
While the impact of an auto industry collapse would be harshest on Michigan, every state would be scarred.
The Midwest would suffer the most. Ohio would lose 59,446 direct jobs, not including auto suppliers; Illinois, 39,115; Indiana, 36,126; Wisconsin, 23,111.
Other big losers would include Missouri and Florida, both with 30,000 direct auto jobs; New York with 33,000, Pennsylvania with 36,000 and Texas with 53,000.
While the number of auto supply workers tied to each automaker isn't known, the number of supply companies is: GM has 1,169 suppliers in Illinois alone; 1,535 in Ohio; and 966 in New York. GM even has five suppliers in Hawaii.
Job losses at the automakers and auto suppliers would lead to others, according to a study conducted by Cole's organization, which conducts research for the car industry.
A report released earlier this month estimated that nearly 3 million jobs would be lost in the United States in the first year after GM, Ford and Chrysler ceased to exist, with $60 billion lost in tax revenue.
Chrysler alone paid $167 million in taxes to the state of Michigan in 2007; $15 million to Ohio and Missouri; $5 million to Delaware.
Charities in states across the nation would be caught up in the economic tsunami of an auto industry collapse. General Motors contributed $7 million to Michigan charities in 2007, and more than $1 million in both New York and Pennsylvania.
"If you let this thing get away from you, the consequences are enormous," Cole said.
Twenty-seven states would lose more than 10,000 jobs each if the domestic U.S. auto industry collapses, with triple that number of jobs likely lost when including parts suppliers, internal documents from the carmakers show.
While the traditional Midwest manufacturing states would be by far the hardest hit, an analysis by The Detroit News of data obtained from General Motors Corp., Ford Motor Co. and Chrysler LLC paint a grim portrait of the economic tidal wave that could spread across the country if Detroit's Big Three don't survive their current financial woes.
CEOs of the automakers and the president of the United Auto Workers received a skeptical reception in Washington on Tuesday from lawmakers who will decide whether to provide a proposed $25 billion bailout to the industry. Yet the home states of the majority of those congressmen would suffer debilitating job losses if Michigan's automakers are allowed to go under.
Advertisement Connecticut, home of Sen. Chris Dodd, who gave automakers a tongue-lashing Tuesday, has 7,330 residents who work for GM, Ford or Chrysler, either for the companies themselves or for dealerships, according to The News' analysis. Another estimated 14,000 are employed in auto parts manufacturing. There are roughly two auto parts workers for every Big Three employee, according to David Cole, chairman of the Center for Automotive Research in Ann Arbor.
Ford has 34 auto parts suppliers in Connecticut, for example; Chrysler has 37, and GM has 211.
While the automakers are often portrayed as a Michigan industry, more than half the states, ranging from the Atlantic to the Pacific and from the borders of Mexico and Canada, would lose more than 10,000 direct auto company and dealer jobs if the Big Three go under; with suppliers added, the number is likely to be more than 30,000 jobs in each of those states.
"People don't realize the economic impact (of the auto industry)," Cole said. "Many of these companies are invisible in their communities. An electronics plant in California may make parts for numerous products, but their main customer may be the automakers. If the automakers are allowed to go under, suppliers lay off workers."
Ford, for example, pumped $3.7 billion into the Kentucky economy in 2007 through purchases from suppliers in that state, according to a document obtained by the News from Ford. Alabama manufacturers got $2 billion from Ford; North Carolina, $771 million; Tennessee, $914 million.
A doomsday scenario would put 157,000 Michigan residents currently employed by the Big Three out of work, plus an estimated 300,000 more who work for auto suppliers.
That's more than 10 percent of Michigan's work force, even before spin-off jobs are considered.
While the impact of an auto industry collapse would be harshest on Michigan, every state would be scarred.
The Midwest would suffer the most. Ohio would lose 59,446 direct jobs, not including auto suppliers; Illinois, 39,115; Indiana, 36,126; Wisconsin, 23,111.
Other big losers would include Missouri and Florida, both with 30,000 direct auto jobs; New York with 33,000, Pennsylvania with 36,000 and Texas with 53,000.
While the number of auto supply workers tied to each automaker isn't known, the number of supply companies is: GM has 1,169 suppliers in Illinois alone; 1,535 in Ohio; and 966 in New York. GM even has five suppliers in Hawaii.
Job losses at the automakers and auto suppliers would lead to others, according to a study conducted by Cole's organization, which conducts research for the car industry.
A report released earlier this month estimated that nearly 3 million jobs would be lost in the United States in the first year after GM, Ford and Chrysler ceased to exist, with $60 billion lost in tax revenue.
Chrysler alone paid $167 million in taxes to the state of Michigan in 2007; $15 million to Ohio and Missouri; $5 million to Delaware.
Charities in states across the nation would be caught up in the economic tsunami of an auto industry collapse. General Motors contributed $7 million to Michigan charities in 2007, and more than $1 million in both New York and Pennsylvania.
"If you let this thing get away from you, the consequences are enormous," Cole said.
Twenty-seven states would lose more than 10,000 jobs each if the domestic U.S. auto industry collapses, with triple that number of jobs likely lost when including parts suppliers, internal documents from the carmakers show.
While the traditional Midwest manufacturing states would be by far the hardest hit, an analysis by The Detroit News of data obtained from General Motors Corp., Ford Motor Co. and Chrysler LLC paint a grim portrait of the economic tidal wave that could spread across the country if Detroit's Big Three don't survive their current financial woes.
CEOs of the automakers and the president of the United Auto Workers received a skeptical reception in Washington on Tuesday from lawmakers who will decide whether to provide a proposed $25 billion bailout to the industry. Yet the home states of the majority of those congressmen would suffer debilitating job losses if Michigan's automakers are allowed to go under.
Advertisement Connecticut, home of Sen. Chris Dodd, who gave automakers a tongue-lashing Tuesday, has 7,330 residents who work for GM, Ford or Chrysler, either for the companies themselves or for dealerships, according to The News' analysis. Another estimated 14,000 are employed in auto parts manufacturing. There are roughly two auto parts workers for every Big Three employee, according to David Cole, chairman of the Center for Automotive Research in Ann Arbor.
Ford has 34 auto parts suppliers in Connecticut, for example; Chrysler has 37, and GM has 211.
While the automakers are often portrayed as a Michigan industry, more than half the states, ranging from the Atlantic to the Pacific and from the borders of Mexico and Canada, would lose more than 10,000 direct auto company and dealer jobs if the Big Three go under; with suppliers added, the number is likely to be more than 30,000 jobs in each of those states.
"People don't realize the economic impact (of the auto industry)," Cole said. "Many of these companies are invisible in their communities. An electronics plant in California may make parts for numerous products, but their main customer may be the automakers. If the automakers are allowed to go under, suppliers lay off workers."
Ford, for example, pumped $3.7 billion into the Kentucky economy in 2007 through purchases from suppliers in that state, according to a document obtained by the News from Ford. Alabama manufacturers got $2 billion from Ford; North Carolina, $771 million; Tennessee, $914 million.
A doomsday scenario would put 157,000 Michigan residents currently employed by the Big Three out of work, plus an estimated 300,000 more who work for auto suppliers.
That's more than 10 percent of Michigan's work force, even before spin-off jobs are considered.
While the impact of an auto industry collapse would be harshest on Michigan, every state would be scarred.
The Midwest would suffer the most. Ohio would lose 59,446 direct jobs, not including auto suppliers; Illinois, 39,115; Indiana, 36,126; Wisconsin, 23,111.
Other big losers would include Missouri and Florida, both with 30,000 direct auto jobs; New York with 33,000, Pennsylvania with 36,000 and Texas with 53,000.
While the number of auto supply workers tied to each automaker isn't known, the number of supply companies is: GM has 1,169 suppliers in Illinois alone; 1,535 in Ohio; and 966 in New York. GM even has five suppliers in Hawaii.
Job losses at the automakers and auto suppliers would lead to others, according to a study conducted by Cole's organization, which conducts research for the car industry.
A report released earlier this month estimated that nearly 3 million jobs would be lost in the United States in the first year after GM, Ford and Chrysler ceased to exist, with $60 billion lost in tax revenue.
Chrysler alone paid $167 million in taxes to the state of Michigan in 2007; $15 million to Ohio and Missouri; $5 million to Delaware.
Charities in states across the nation would be caught up in the economic tsunami of an auto industry collapse. General Motors contributed $7 million to Michigan charities in 2007, and more than $1 million in both New York and Pennsylvania.
"If you let this thing get away from you, the consequences are enormous," Cole said.