The Automotive Recession - Part 1
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Tragedy of Escalating Prices of Gasoline
NOTHING CRIPPLES AN ECONOMY, business and industry; nothing leads to the loss of jobs and affect consumers as higher gas prices. You don't need to be a Chevrolet or a General Motors' dealer in suburban Detroit to know that. Little wonder if you ask an auto-dealer they will regale you with the story of lay-offs and how that has greatly affected their businesses in times past. Why? Because of higher gas prices many auto dealers have been forced to keep fewer new cars and trucks on their lots; and as consumers seek for a cheeper zoom-zoom used cars, the dealers in question have no choice than to stick to the consumers choice - cheap and used cars!
The truth is, the escalating prices of gasoline affect every sector of the economy, from government institutions, private organizations to individuals; it reduces demands for automobile while domestic automobile makers, from pickup to sport car are left to suffer the negative consequence. Therefore, the uncertainty cause as a result of higher oil prices ha both direct and indirect impacts on mortgages and job losses, thus leading to the meltdown of domestic automobile industry!
In 1990, for instance, it was reported that General Motors had 127 Black dealers in the United States alone, sadly, few years later down the line, the count down was tragically reduced to about 38! There is no doubt, therefore, that when the automobile industry suffer a hit, it invariably affect everyone like financial tsunami, perhaps mostly the Blacks! So, whether you're an automaker, dealer, assembly line worker or lover, if anything happens to the price of oil, sure enough, we would all be suck and thrown out of the auto industry! The industry would be like the sun that's gone into eclipsed.
The truth is, the success recorded by the automobile industry in shaping the modern world is astronomical and felt globally! Particularly, its manufacturing base has affected tens of thousands of Black American families from poverty to riches, and for many of us to be upwardly mobile (And come to think it over. I don't even have a car of my own excerpt you're touched and kind enough to give me your used car as a gift. And honestly, I'll really appreciate that). In fact, according to Thomas Sugrue, a University of Pennsylvanian historian categorically affirmed that automobile industry has actually reshaped urban American. But is it the urban American alone? I doubt! It is worldwide!
However, its effect is better seen in the U.S, because many people, especially Blacks "were employed by this giant industry and by other industry that, either directly or indirectly, are connected to automobile industries. Unfortunately, few years down the line, because of the automobile recession, many lose their high-paying jobs which were connected, one way or the other, to these giant automobile industries such as the manufacturing plants, assembling operational organizations just to mention few.
However, that is not a totally dead end, because with the dead of one stage comes the birth and the resurrection of another! For instance, like in Asian and Europe, most of the automakers "replaced many of the manufacturing plants with assembly of their own." In the United States, some of the places where this transition took place include but not limited to Mississippi, Georgia, Tennessee, Carolina, West Virginia, just to mention few. So for those looking for job in the auto industry, perhaps the best place to hunt is the rural area where these automobile manufacturing companies locate their industries and offices.