Big Three Bailout and Foreign Automakers

David Broder, in his Washington Post column last Sunday, implied that the opposition to the bailout of US automakers by southern Senators, led by DeMint (R, SC) and McConnell (R, KY) was influenced by the presence of foreign auto manufacturers in many southern states. The column is about politics and not specifically about economic development but it raises important questions for economic developers:

-Is it reasonable to assume that the bailout of the US auto industry (approved administratively by President Bush after the legislation failed in the Senate) will be bad for foreign automakers?
-Will the bailout create a battle within the auto industry between the southeast and the midwest for future jobs and investment?
-Are Tier I and Tier II suppliers of the Big Three likely to migrate south as Ford, GM and Chrysler contract?
-Are the supply chains of foreign automakers insulated from the troubles of the US auto industry?
-How should the economic development profession react?

What do you think?

This was also posted as a discussion topic at http://economicdevelopment.ning.com/forum/topics/big-three-bailout-and-foreign

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Do it Now!

The environment demands that we use less oil and find better energy sources for our mobility. Our transportation infrastructure is crumbling due to insufficient funding provided largely by fuel taxes. Unfriendly nations are enriched and their hostility is funded by our globally unrivaled consumption of oil.  Raise the federal gas tax now!

http://www.nytimes.com/2008/12/27/opinion/27sat1.html?partner=permalink&exprod=permalink

http://www.nytimes.com/2008/12/23/us/23works.html?partner=permalink&exprod=permalink

Invest at home – Infrastructure & Jobs

Bob Herbert of the New York Times gets it. Today’s column makes a forceful case for intense, well planned infrastructure investment as a crucial part of President Obama’s stimulus package.

http://www.nytimes.com/2008/11/25/opinion/25herbert.html?_r=1&hp