The auto industry is suffering. The U.S. auto industry, all three main manufacturers, are all on the verge of bankruptcy. Sales have dropped 15% in 2008, and another 15-20% is expected in 2009. There is no doubt that the problems have been building for decades, with fat-cat auto executives selling Hummers and Quad cab pickups to the lazy and rather ignorant Joe Sixpack customer. Whatever the cause, the whole industry stands on the edge of the abyss: in a couple of years, there could be no “made in America” cars whatsoever.
A part of the conditions for the U.S. government bailout was that automakers have to reach agreements with their unions to cut wages and reduce staffing levels. Yet the unions say “we won’t take cuts!”