Three Rivers closely watching auto bailout debate

By Dustin Grove (grove@wsbt.com)

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Local auto suppliers worried about future of Big Three car companies

Executives from the Big Three car companies are seeking a $25 billion bailout to help save them from possible collapse. Automakers aren't the only ones concerned about their future; the auto industry is vital to the Three Rivers, Mich. community. (WSBT photo)

By Beth Boehne

Story Created: Nov 19, 2008 at 5:45 PM EST

Story Updated: Nov 23, 2008 at 1:09 AM EST

THREE RIVERS — Executives from the Big Three car companies are in Washington again Wednesday asking for $25 billion in taxpayer money to help save them from possible collapse. But it appears their appeal may be stalled because the Senate can't agree on the proposal.

There are nearly 170,000 auto workers in Michigan, and more than 300,000 people who work for auto parts suppliers. Hundreds of those suppliers work in Three Rivers.

Many who live in Three Rivers, Mich. wear a blue collar to work. Cars and trucks drive a lot of their business. It’s no Detroit; but union workers say it could certainly be a first cousin.

“We rely on The Big Three to keep us going,” said United Auto Workers Local 2093 President Rodney Reed.

Nearly 450 union members, for example, work at American Axle’s Three Rivers plant. UAW leaders say 80 percent of the facility’s work comes directly from General Motors.

A nearby plastics company also supplies parts to GM. So they are all watching and waiting to see if Congress will bail out Detroit’s ailing Big Three: Chrysler, Ford, and GM. General Motors alone is said to be losing $5 billion per month.

“[The auto industry] is vital to what happens in this community,” said John Cerny, a Three Rivers resident, who supports a bailout but said the bailout should not include any money for executive pay bonuses.

“We have Thanksgiving coming up, we’ve got Christmas coming up,” said Reed. “There’s just not a lot of money to spread around anymore already so there’s a lot of talk about it right now.”

Reed said the $25 billion bailout is essential for American Axle in particular.

“We’ve got some other business going on with Mack Truck and others and they’re not affected, but if 80 percent of our business leaves this facility here, we won’t have a need to do anything else.”

American Axle is still recovering from a months-long strike earlier in 2008 that cost the company $644 million in the second quarter and additional $441 million in the third.

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