Automotive+Industry-Period+6

For your group's assigned topic below, read one or more of the articles provided, then use the Times Topics pages to find more articles that address this issue and how it has played out in recent news. Work to both understand the larger issues as well as to identify a "microcosm" of the issue—such as a person involved who people can relate to or focus on, like Bernie Madoff, or a small part of a larger problem, like the A.I.G. bonuses—that you can use to "sell" the issue to the public.
 * FISHING FOR RED HERRINGS**

· Times Topics: Automotive Industry Crisis []
 * Issue: AUTOMOTIVE INDUSTRY**

· Selected Related Articles: "They’d Rather Be Flying" [] "Contrite Over Misstep, Auto Chiefs Take to the Road" [|Contrite Over Misstep, Auto Chiefs Take to the Road] "Corporations, Tending to a Tattered Image, Clip Wings of Private Jets" []


 * WHAT IS A RED HERRING?**

A Red Herring is one smaller piece of information or a smaller issue that is intended to be distracting or distracting from the initial issue or question.


 * ISSUE BACKGROUND**

During the Oil Crisis and the downturn of the economy, Automotive industries were losing sales due to the increasing prices of gas and the unwillingness of Citizens to drive.Many Automotive companies were facing Bankruptcy. Because of this three of the Automotive companies requested bailouts from the government. These three companies were General motors, Ford, and Chrysler.
 * Issue:**

-Ford didn't request help and instead set aside 25 billion as a relief fund to help with their economic instability.It was the first to pull Out of the economic downfall
 * What Did They Do?**
 * -**The government Continually refused to bail them out and eventually General Motors and Chrysler had both filed bankruptcy.

-For General Motors they emerged from bankruptcy with many of their companies such as Saturn and hummer closing down. Its Share had fallen to 20 percent and its domestic sales were almost equal to its international sales. -Fiat Took over Chrysler along with a 20 percent stake. Its largest shareholder became the united Auto Workers -Ford was in the best shape of each of the companies. It did lobby for the others assistance but it was the first to bounce back in 2009.
 * What Happened to the companies?**


 * POTENTIAL MICROCOSMS**

-When these companies came to ask for a bailout they decided to take their private jets not thinking it would have any impact on the decision of the government or have any decision on the medias view of them. This is probably the major microcosm of the automotive industry. Many media outlets were focused on the private jets as well as the people who were discussing their bailout. Representative Brad Sherman Stated "Raise your hand if you are going to sell your jet and fly back commercial". This showed their focus on the individuals spending rather than the spending and eventual bankruptcy of the company.

- Focusing on The Big Three also seemed to be a way for the media to focus on just a certain aspect of the entire automotive industry failing.

These were also Microcosms because they are distracters of The big three by taliking about the status of their location itself.

-The Big Three are saddled with large unfunded pension obligations & healthcare costs of thousands of retirees (sound familiar America). Almost 500,000 retirees collect benefits - the active work force is 300,000. About $1500 per vehicle produced in 2007 was spent on healthcare.

-Unemployment was in the 13 to 16% range in Detroit from 2003 to 2008 when it was less than 5% nationally for most of this time. Today unemployment is 28% in Detroit. (Perfect example of the medias attention to the Big Three issue)