The Big Three

Just a month and a half after the financial sector in the United States received a $700 billion bailout package, the U.S. auto industry is begging for it to be their turn. U.S. auto executives are seeking $25 billion to save an industry on the brink of collapse. And Canada wants in. Industry Minister Tony Clement will be traveling to the United States to try and set the framework for a joint deal. But is another bailout plan using taxpayer’s money really justified? I’m not fully convinced.

There’s a lot of data that seems to indicate a bailout plan for the automotive industry is an absolute necessity. GM, Chrysler and Ford employ nearly 250,000 people in the United States, and affect nearly 4 million other jobs including suppliers, dealers and rental companies. Up to 70,000 of these people are Canadians, as automobile parts often cross back and forth through our border up to 7 times prior being installed into a vehicle. A filing for bankruptcy by any one of the Big Three could have catastrophic consequences for our already fragile economy. These facts seem to suggest that a bailout of the industry is crucial and an absolute must.
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