Third Impact

Automotive Research

L to international financial crisis, which has already left, a few months ago, be exclusively financial to also be a crisis in the real part of the economy, continues its March on the American automotive sector. As every crisis of this nature, the durable goods-producing sectors are the most affected are given that families limit the demand for them in the first place. And among the sectors affected in the American economy, the automotive sector is one of which is more being beaten. The importance of the automotive sector for the American economy is not minor, given the amount of employment that generates, and its contribution to the gross domestic product (GDP) American and technological development, and is why that is not one minor issue that the sector is experiencing a critical situation that can lead to several of their companies (including a large) into bankruptcy. The big three of Detroit, General Motors (NYSE:GM), (NYSE:F) Ford and Chrysler, which employ a total of 240,000 people directly in United States, they are not going through a good moment and the possibility that can break is concrete and not less. But the possible fall of these three companies, there is much at stake. In it are at stake nothing more nor nothing less than 3 million jobs in the United States that direct or indirectly linked to these companies, according to a report by the Center for Automotive Research.

It is that a possible bankruptcy of these companies could trigger a great succession of bankruptcies of companies that make up the chain of production in the automotive sector. But what not many mentions, are the problems that the collapse of these companies can generate for the rest of the productive sectors of the U.S. economy and even the financial system. It is an increase of a large mass of unemployed workers can be translated into a further deterioration in the loan portfolios of financial institutions faced with the impossibility of these unemployed workers to meet their obligations.