Leaders meet at GM’s Fairfax plant to support federal bailout
Kansas City Business Journal
Executives of General Motors Corp.’s Fairfax Assembly Plant, United Auto Workers Local 31 and other area leaders made their case in favor of extending federal financial aid to the U.S. auto industry.
The event outside the Fairfax plant in Kansas City, Kan., came on the same day that automakers, the UAW and officials from other communities where auto plants are located pressed Congress for assistance. General Motors (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler want direct loans from the federal government, saying they need the loans to survive current economic conditions.
“Support for the domestic auto industry will contribute to a stronger economy, save millions of jobs and establish U.S. manufacturing and technology leadership in the global marketplace,” Michael Dulaney, the Fairfax plant’s manager, said in a release. “We all have a lot at stake.”
GM said in the release that “this is not a ‘Detroit’ issue; rather, this issue greatly impacts America’s best interest.”
GM’s Fairfax plant and Ford’s Claycomo Assembly Plant employ roughly 7,000 workers in the Kansas City area. The plants also support a number of other companies that furnish supplies and services for the plants.
U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke reportedly oppose extending the federal bailout to the auto industry.
Some analysts said Nov. 10 that GM probably was on the verge of bankruptcy, creating uncertain times for 2,640 employees at the Fairfax plant. GM reported Nov. 7 that it lost $2.5 billion in the third quarter, or $4.45 a share. That compares with a loss of $42.5 billion, or $75.12 a share, last year.
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