What’s next for the big three is anyone’s guess, but Chrysler and GM say without federal loans they could file for bankruptcy in the coming weeks.
So what would it mean to our state if the Big Three go under?
Thousands of jobs in our state are at risk in a battle between domestic auto makers and the government.
Economist Rick Niswander said, "There’s a human element of million of people who are not at fault here that would be seriously hurt if car companies went under."
He says the auto industry is simply too big a part of our economy to let it go under, but federal money can't just be a hand out.
“If all were going to do is give them 14 billion or some other number of money without forcing them to take some very difficult decisions that they're going to have to make then its not a good deal for the American people," said Niswander.
The North Carolina Automobile Dealers Association says the auto industry produces 18 percent of all retail sales in our state. Each dealership averages nearly $30 million per year in revenue.
NCADA President Robert Glaser said, "North Carolina auto dealers collect more taxes than anybody other than The Department of Revenue, that's how big a piece the dealers are to the overall state economy."
In fact, he says, millions of other jobs are tied to the auto industry.
Senator Richard Burr voted against the auto loan plan. He says, “The fundamental problems with the Big Three cannot be fixed by simply writing another check.”
Burr wasn't the only law maker to shoot down the proposal. In the east Representative Walter Jones, G.K. Butterfield, and Mike McIntyre all voted against the measure in The House.
Senator Elizabeth Dole was one of 10 Republicans who voted in favor of the proposal. However, according to an article from the Associated Press, Dole would not have approved the measure. She was hoping that further discussion would have brought new amendments to make the bill.
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