Ben Was Here

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Car Jobs = Car Dealer Jobs

As the formerly big three CEOs visit congress again to beg for more money, CNN has posted a map showing car industry related jobs in each state. What they don’t show is totals for the country. Of the 2.2 million jobs related to the auto industry, 1.2 million are in sales. 777,000 are shown as abiguous car parts jobs (does that mean parts manufactuing or parts sales?) and a relatively small 190,000 assembly jobs.

Considering that part of the companies plans include cutting jobs, the 190,000 is likely to get even smaller even with the bailout, as they would surely cut American jobs over less expensive foreign jobs.

Car sales jobs will likely shrink due to lower car sales nationwide (due to the larger credit crisis). Most car dealerships have diversified in recent years, so the loss of the American brands would not be have as big an impact as they say. Besides, here in Minneapolis, most of the dealerships are owned by a small group of incredibly wealthy individuals. I know this is true in other metro areas, as well.

So what is the real impact of car companies?

The CEOs say that letting them go into bankrupcy is not an option, as people will be hesitant to buy from a bankrupt company. But people being hesitant to buy from them was part of the problem in the first place, as they make inferior products.

I know I will be hesitant to buy from them, as they have driven themselves into the ground. I have driven a 1998 Nissan Sentra for eight years that I haven’t put a penny into it other than normal wear and tear. That is why the big three are in the position they are in and why they will be there in a year with or without a bailout.

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Filed under: social commentary,

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