A RED FLAG: Motor City problems filter into Midlands (Ne-Ia)

[Omaha Steve]

http://www.omaha.com/index.php?u_page=1208&u_sid=10488881

Published Sunday November 16, 2008
A RED FLAG: Motor City problems filter into Midlands
BY PAUL GOODSELL AND JOSEPH MORTON
WORLD-HERALD STAFF WRITERS

Cozad is some 900 miles from Detroit, but troubles in the auto industry hit close to home in this central Nebraska community.

Cozad's largest employer is the Tenneco Inc. plant where 535 people make Monroe shock absorbers. Late last month, Tenneco announced that it is going to close five facilities and eliminate 1,100 jobs. One of the unnamed plants reportedly makes shock absorbers.

"Absolutely we're on edge," said Robyn Geiser, executive director of the Cozad Development Corp. "When you hear about GM and Ford and Chrysler, we know it will have an impact on us."

Cozad isn't alone. About 22,000 workers in Nebraska and 45,000 in Iowa are employed in jobs related to auto manufacturing and sales. Thousands more work on auto financing or repair.

snip The Eaton Corp. has cut its work force at a number of Nebraska and Iowa facilities. Recently, it laid off 90 workers in Shenandoah, Iowa, where it makes transmissions. Sixty more were laid off in Kearney, Neb., where valves and gears are made. At the company's Hastings, Neb., plant, which makes parts for axles, 22 people lost their jobs.

Union Pacific Railroad, meanwhile, has seen a 24 percent decline in car loadings for automotive freight in the third quarter of 2008, said company spokesman Mark Davis. Last year, automotive shipments represented 9 percent of the railroad's freight revenue, or $1.46 billion. Of that revenue, nearly 80 percent comes from hauling finished cars.

FULL story at link.

[jwirr]

1. The banks we could have done without but there is no end to the

ramifications of the auto industry failure. The talk is all about the many companies that make parts for autos or sell them but it goes further than that. The people laid off from those jobs are not going to be shopping as much, going out to eat as much and a number of other things. I work as the answering service for a B&B and the economy is already showing in our bookings - imagine what the lose of that many jobs will do.

[DearAbby]

2. I tried to tell those who are against bailing out the automakers

that not only those at the plants will be affected, but those who supply the parts and raw materials to the companies will be affected. It would be a large ripple effect.

At least this bail out will protect AMERICAN Jobs, it will directly help main street, it will help all of us. We already have Millions without jobs, adding to that number helps us how?

[tammywammy]

4. Many don't want to listen.

[DainBramaged]

3. I am coming to the conclusion that the vast majority of DU members just don't care about the US auto

industry, and Unions overall. They'd rather talk about how much millage they get with their Prius, or how good they are treated at Starbucks.

I am getting to the point where I will just not waste my time here anymore.

[to2bene]

5. My Husband Is A UAW Auto Worker

but no way should a bailout go to the auto companies unless there is total oversight of the money. If blank checks are written, the CEOs and Execs will take the money and line their own pockets and afterward they'll still go bankrupt. The money must go to keep "main street" working, or not be given at all.

[DearAbby]

7. I dont believe they should issue blank checks

and those in management who caused this mess, and I blame them. Are not to receive a dime of this money. the entire management of these companies should be restructured. New people in charge, as part of the bail out.

[DearAbby]

6. Dont leave Dain...

we just have to keep pluggin away.

[SoCalDem]

8. I don't really think that's it..

I think that we are ALL (the whole USA) in for a really big shock.. Our lives are all gonna change...big time..

People cannot continue to buy cars at the pace they have been, and there are just too many being made for the overall economy.

Our economy is SEVENTY PERCENT "service" ... "Service" jobs usually are pretty low paid, and as the plastic card money "goes away", people have to stop buying... everything... and the ripple effect just gets bigger with every passing day.. It's inevitable :(

We've all been taken on a 30 year ride..and now the ride's over:(

[Blue Diadem]

9. Yep, You said it well.

I'm not sure people realize what is going to happen. I don't know how bad it will get, but I know it's not going to be easy.

[Blue Diadem]

10. Even if we bail them out(which I'm for with some strings)

the consumers still aren't spending. Money isn't there to purchase new cars. Credit has dried up. House prices have dropped, no more equity.

We've been through 2 plant closings. Our income is 2/3 of what it was. We barely make it and have no extra money, no going out to eat and no money for cars. Any raise is automatically eaten up by insurance increases. There are many more like us and with each unemployed or lower paid worker, it's only going to spread.