South Ensuring Detroit Won't Rise Again

Detroit and its automakers won't quit at any cost

(NEWSER) - When Congress bailed on aid for Detroit automakers last month, it felt like lawmakers "had just voted to turn the lights out on the Motor City," Detroiter Sarah Webster writes in the Free Press. But even as the Big Three dance dangerously close to bankruptcy, she refuses to concede loss. "We never give up," she says, noting the signs of progress at the city's auto show. "Resilience has been fused into our bones." More»

Supply to be slowed so it meets lowered demand, company says

(NEWSER) - Ominous news on the auto front: Chrysler will idle all its North American plants for at least 30 days beginning Friday, a move meant to realign the company's supply with plummeting demand, the Detroit News reports. Ford, meanwhile, will close 10 assembly plants for an extra week in January, the AP notes. Chrysler suffered a 28% sales slump this year, the worst among ailing automakers. More»

Analysts warn that letting automakers sink will have impact across the economy

(NEWSER) - Letting one of the Big Three go under could have disastrous effects on many corners of the American economy, McClatchy Newspapers reports. Beyond the jobs lost at the companies and their suppliers—as well as the jobs lost everywhere those workers spend their wages—the repercussions would hit sectors as diverse as defense, television, and even sports. More»

(NEWSER) - A bid to provide emergency aid to automakers failed in the Senate tonight, the Washington Post reports. Negotiators nearly completed an 11th-hour deal but got hung up on union wages. Republicans wanted immediate cuts, and Democrats sought to delay them until 2011. "We're not going to get to the finish," said Senate leader Harry Reid. "I dread looking at Wall Street tomorrow. It's not going to be a pretty sight." More»

Yes, there will be pain, but saving irresponsible companies bad for US future

(NEWSER) - Given the failure of the Wall Street bailout, to think doing the same for Detroit would help the auto industry and America in the long run is fantasy, Kevin O’Brien writes in the Cleveland Plain Dealer. The only thing that will help is to feel the pain. “No more bailouts,” O’Brien writes. “Not for private industries. Not for states. Not for cities. Not for school districts.” More»