Even auto dealers do not seem sold on the idea of an industry bailout.
Balance sheets belonging to General Motors Corp., Chrysler LLC and Ford Motor Co. might look bleak, but Valley car dealers said they don't think an approval or rejection of the Big Three bailout will make or break their dealerships.
Bob Zimmerman, owner of Zimmerman Motor City, a Chrysler dealership, and Tom Mertz, owner of Sunbury Motors, a Ford dealership, said they don't think the Big Three American auto makers will go out of business if the bailout plan is rejected.
And they don't expect dealership layoffs to hit the Valley either.
"To me personally, I've gone through this back in the early 1980s when Lee Iacocca stepped forward to help save Chrysler and work with unions and pay back loans that the government helped Chrysler with," Zimmerman said.
"And the pendulum does swing back."
The House of Representatives reconvenes this week to decide whether to use part of the $700 billion Wall Street bailout to help struggling automakers GM, Chrysler and Ford.
And Valley car dealerships, facing a lagging economy and industry bailout, are watching sales with a close eye while remaining confident in their survival no matter what Congress decides.
"Our area seems to be not quite as affected as what you read. Being where we're located, we don't seem to have quite the peaks and valleys other areas do," Mertz said.
Mertz said most of the bailout talk has focused on Chrysler and GM, while there have been discussions of Ford selling shares in its stake of Mazda Motor Co. But as for the three companies going out of business, "I can't see it occurring," he said.
U.S. Rep. Chris Carney, D-10 of Dimock, said in a prepared statement that American auto manufacturers should be held accountable for their decisions.
"As the auto industry legislation moves forward, I am extremely concerned how this will impact our local industries and manufacturers, particularly our jobs and economic development," said Carney, who opposed the previous bailout package because it "lacked the necessary oversight."
Carney also said he has received calls from constituents both in favor and against the bailout.
Milton resident Linda Barnhart, owner of a 2003 Pontiac Sunfire made by GM, hopes the Big Three will improve customer service if granted a second chance through the bailout.
"They don't deserve it (the bailout)," said Barnhart, who has been unhappy with her car.
Jo Ann Buckles, of Sunbury, said she is also against the bailout.
"I think the government should check with the companies and find out why they're having problems," rather than just giving them money, she said.
Ron Ettinger, of Mifflinburg, who owns a Ford SUV, said he attributes the American auto manufacturers' problems to poor management.
"I think if they (The House of Representatives) reject the bailout, the car companies will eventually go bankrupt," he added.
If they do go bankrupt, the companies may have a chance to restructure management staff and debt to become competitive in the market again, said Michael Moohr, associate professor of economics at Bucknell University.
Moohr said local dealers should remain hopeful if the bailout does not get approved -- it may lead to the Big Three to develop better products. However, the dealerships must still grapple with consumers unable to secure credit to buy a car or those too nervous about the economy to buy a new vehicle.
"Those are things local dealers can't do much to overcome," he said.
With about one out of every 10 jobs in America related to the auto industry, Zimmerman said the bailout would have a ripple affect on blue collar and white collar workers.
Mertz said: "That's why it's so important the industry is strong and survives is because of all the jobs just from the material aspect to the people that work at the dealership level."
Mertz said the plan at his dealership is to encourage the sales staff to keep a positive attitude and be the best they can be at their jobs, despite what happens with the bailout plan.
"We're not worried," he said, concerning layoffs.
When asked if the success of Danville's Hawkins Chevrolet is contingent on the bailout, dealership general sales manager Robert Hunter said he could not comment, but that sales have remained consistent. He did say he was concerned about the bailout as an American and not just an employee of Chevrolet.
"The ramifications of a failing auto industry would be widespread and go beyond Hawkins Chevrolet," he said.
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Discussion
Valley car dealers are optimistic about future
Future doesn't ride on federal bailout, they say
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