Survey: GM bankruptcy would cost suppliers 275,000 jobs
crainsdetroit.com
1:28 pm, November 25, 2008
By Ryan Beene
A General Motors Corp. bankruptcy would force auto suppliers to downsize or close, costing 275,000 jobs, according to a survey last week conducted by Birmingham-based Planning Perspectives Inc.
The survey encompassed 270 supplier executives from 185 companies across 12 states and found that 68 percent said a GM bankruptcy would force their company to downsize; 9 percent said they were likely to go out of business and 3 percent said they would definitely go out of business.
Seventy-six percent said they supported a GM bailout for a variety of reasons, with 34 percent saying the economic consequences of a bankruptcy would be too damaging, while 25 percent said the auto industry deserves rescue like the financial industry. Some 20 percent said bankruptcy is not a viable option for GM.
Among the executives who didn’t support a GM bailout, 35 percent said the ability to renegotiate labor contracts and shrink its dealer network in bankruptcy is a better option, 35 percent said GM would ask for more money and 12 percent said government aid would come with too many strings attached.
The survey also found varying levels of support for government aid to other automakers among supplier execs, with 71 percent supporting aid to Ford Motor Co. but only 54 percent supporting aid for Chrysler L.L.C.
Suppliers were split on where the blame falls for the problems facing GM, with 41 percent blaming top management, 40 percent blaming the United Auto Workers and 19 percent blaming the government.
© 2007 Crain Communications Inc. |
