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Detroit Should Look at the History of Steel

Bankruptcy saved that industry, but auto isn't exactly the same

By Katherine Thompson,  Newser Staff

Posted Nov 23, 2008 2:09 PM CST
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(Newser) – When the steel industry was floundering, many people thought the worst possible outcome would be to allow the big, old companies to go bankrupt. But it took that failure to pare down the industry to a workable size and inject new life into it, David Streitfeld writes in the New York Times. Could the same be true of the auto industry?

Plenty of people would say no. "What happens in the automotive industry affects each and every one of us," a GM website warns. And the two businesses have some fundamental differences. But the biggest impediment to comparison is the fact that steel companies collapsed during strong economic times. Even some who hailed steel's fall support a Detroit bailout.

Ford Motor Company employee Ralph Gazzillo assembles the new 2008 Ford Taurus X at the Chicago Assembly Plant in this June 22, 2007 file photo.
Ford Motor Company employee Ralph Gazzillo assembles the new 2008 Ford Taurus X at the Chicago Assembly Plant in this June 22, 2007 file photo.   (AP Photo/M. Spencer Green, file)
Ohio's steel industry is healthier and more productive than it has been in a decade, at the cost of thousands of jobs. Some think it may be a model for Detroit.
Ohio's steel industry is healthier and more productive than it has been in a decade, at the cost of thousands of jobs. Some think it may be a model for Detroit.   (AP Photo/Mark Duncan, File)
Pittsburgh's bridges, these spanning the Monongahela River, were mostly built during the steel heyday. After a big collapse, the industry has had to reinvent itself.
Pittsburgh's bridges, these spanning the Monongahela River, were mostly built during the steel heyday. After a big collapse, the industry has had to reinvent itself.
The Big Three automakers, GM, Ford Motor Co., and Chrysler LLC, are in danger of bankruptcy, and public sentiment is divided over whether that might be a blessing in disguise.
The Big Three automakers, GM, Ford Motor Co., and Chrysler LLC, are in danger of bankruptcy, and public sentiment is divided over whether that might be a blessing in disguise.   (AP Photo/ Mustafa Quraishi)
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COMMENTS
Showing 1 of 1 comment
Guest
Nov 23, 2008 2:53 AM CST
No,there is no comparison.Not the same times,the same economy or the same industry.

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Chrysler • General Motors • Ford • US economy • steel • auto industry • bailout • financial crisis

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