Originally Posted by OldArmy
Been to Detroit recently? A huge number of the suppliers, specialty houses, small unit manufacturers, others that supported the auto industry DID FAIL. There are vacant facilities all over the greater Detroit area, millions of square feet where the second and third tier suppliers used to operate. Stimulus didn't save them, they are gone, long gone. The argument that saving GM and Chrysler saved the small guys doesn't hold water because it didn't.
Except I never argued that saving GM and Chrysler saved the suppliers.
Part of the agreement was restructuring for both companies, just like any bankruptcy would. Orders cut means some suppliers end up going under. Just like GM and Chrysler had to cut it own workforce.
The bailout had nothing to do with saving everyone's job and continuing like normal. It was about getting them a loan(which no bank was offering either and they needed to have) and restructuring into profitable companies before the vast majority collapsed. I don't think people understand just what happens when a company like GM and Chrysler can not get a loan and their credit is 100% tapped.
It also went farther than just Detroit. Here in Ohio a good friend of mine's business went under. He manufactured and supplied ball bearings to parts manufacturers in the auto and boating industries.