Local automotive dealers say a loan to the big three American automakers is essential to avoid dire economic fallout.The U.S. Congress is considering a $25 billion emergency loan package for General Motors, Ford and Chrysler.
Phillip Alderman, general manager of Colonial Chevrolet-Buick in Talladega, said, “Do I like it? No. But is it necessary? Yes.”
Alderman said the American automotive industry is dangerously close to collapsing. “They needed to do this six months ago. It’s that bad,” Alderman said.
Bill Stanford, owner of Bill Stanford Automotive in Talladega, said a collapse would be devastating to the millions of workers in the auto industry and their families.
“Look at your sales tax base. If manufacturers go broke then the dealers are gone, too. There wouldn’t even be a Christmas parade without new car dealers,” Stanford said.
He said he thought part of the reason a loan package for the auto industry has gotten a bad reception from the public is because it has been portrayed as a bailout.
“The national news media keeps using the term bailout,” Stanford said. “It is a loan, not a bailout. If (you) take a $500 loan from the bank it is not a bailout because you pay it back, and so would we.”
Stanford also pointed out that the current economic recession did not start in the automotive industry but its effects have trickled over to the auto industry, causing the current crisis.
Tony McRae, general manager of Pell City Ford-Lincoln-Mercury, pointed out a loan to the auto industry is not uncharted territory.
“The loans would definitely benefit those companies if handled right,” McRae said. “Chrysler borrowed money back in the ‘70s, and it did help them.”
McRae said anytime the manufacturing aspect of the company is affected it is felt by the dealerships, too.
“The automotive business is the number two industry in the United States in employing people,” McRae said. “This would definitely help us around here with all the foreign car competition. Count me as one who supports (the loan). It will keep people employed.”
