We need your help to reach our fiscal year-end goal tomorrow. Donate Now

Auto impact not just about Detroit

Marketplace Staff Dec 12, 2008
HTML EMBED:
COPY

Auto impact not just about Detroit

Marketplace Staff Dec 12, 2008
HTML EMBED:
COPY

TEXT OF STORY

Scott Jagow: We’re joined now by David Buick. He’s with the Cantor Index in London. David, there’s obviously a lot of angst in the markets. What’s the biggest concern?

David Buick: It’s the realization that, frankly, the U.S. auto industry’s been living in the dark ages for the last 20 years. And there is a grave concern they’re not going to be in a position to provide radical plans for Congress by the end of March. Because this is a huge industry — probably employs 2 million people — so it is a very, very serious issue. It’s not just Detroit, it’s affected U.K., China, India. It’s a dramatic problem.

Jagow: What do you think is the best scenario for the carmakers at this point?

Buick: Scott, you won’t want to hear this, but shall I tell you?

Jagow: Yes, please.

Buick: I would do everything, if I was President-elect Obama, in my power to make sure that the banks were strong as quickly as possible. Because banks don’t want to carry on lending money to a lame duck, do they? But what Mullaly and his colleagues Nardelli and Wagoner have to do, and they have to do it quickly, is they have to agree massive redundancies and huge cuts. And however devastating it is for Detroit and the surrounding areas, you have to take some remedial action. And I think they will fudge through a deal some time in the next two or three weeks, or they’ll wait till President Obama takes office on the 20th of January. But all it means is the old begging bowl for Oliver Twist is out there for another $30 billion, and that’s not fair on the U.S. taxpayers.

Jagow: OK, David Buick from the Cantor Index. thanks for joining us.

Buick: It’s a great pleasure.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.  

The clock is ticking 

Our fiscal year ends tomorrow. Can you chip in $50, $25 or even $10 to help us reach our goal?