Detroit Bracing for Meltdown if Bailout is Denied
The city of Detroit has long been known as the center of the auto-industry. It is home to General Motors, Ford, and Chrysler. But now the Big Three giants of the auto industry are facing bankruptcy and are looking to the government for a $25 billion bailout--a recovery plan the government has been opposed to thus far.
In Detroit, auto dealers and auto parts suppliers have seen drops in sales as high as 45 percent, with almost every company having to lay off large numbers of employees.
It is estimated that more than one million people are employed by the auto industry, according to the BBC. If one of the Big Three were to be forced into bankruptcy, it's thought that up to 500,000 jobs would be affected within the auto supply industry as well.
Business analysts in Detroit estimate that a collapse of the auto-industry could mean the end of Detroit as a city.
While almost no one in the city opposes the idea of a bailout, many agree that any measurements taken should include conditions that will lead to stricter improvemens for the auto industry.