Tuesday, March 31, 2009

Auto recovery director to be in Michigan

The White House’s new point man for helping communities deal with the fallout from the changes in the auto industry will be in Michigan on Wednesday, meeting with Gov. Jennifer Granholm and Detroit Mayor Ken Cockrel.

Montgomery was named directorRecoverfor Auto Communities and Workers by President Obama on Monday, being given the mission of coordinating federal resources and strategizing with public officials to react to cutbacks in the industry. As explained by the president, his task is to come up with ways to retrain workers, create job opportunities andhelp communities struggling with high joblessness.

Montgomery is set to meet with Granholm andher economic development team in Lansing with a press availability following at 3:30 p.m. He will then go to Detroit where he will meet with Cockrel. Both meetings are closed to the press.

A Pittsburgh native, Montgomery is a dean at the University of Maryland and an economist

Monday, March 30, 2009

Uncertainty Rolls on DETROIT-the Motor City

DETROIT, well known for its automotive legends, is at a loss.
Thousands of Detroit auto workers like Tom Budimerovich, an assembly-line worker at Chrysler's Warren truck plant, is hoping for answers about the fate of their jobs and their industry.
“The wait is driving us crazy. You want to make a plan for tomorrow. Right now, you work hard all day long and go home worried about losing your job the next day," he said.
But as the government drew a deeper line in the sand, workers were left in limbo.
President Barack Obama ordered General Motors Corp and Chrysler to accelerate their restructuring efforts and brace for possible bankruptcy on Monday.
GM was given 60 days to rework its plans, and Chrysler was told it had 30 days to complete an alliance with Fiat SpA. The alternative: a cut-off of government funding.
Automakers, parts suppliers and dealerships have lost more than 400,000 jobs over the past year as Detroit's automakers cut costs to survive a brutal downturn in sales.
Autoworkers came to expect layoffs, plant closures and concessions, all of which they were told were necessary to keep the big three U.S. auto companies from failing.
Auto workers represented by the United Auto Workers union, many of whom campaigned for Obama, were angry that the government appeared to be taking a tougher line on the automakers than on banks and financial companies like insurer American International Group (AIG.N).
No one knows what their fate would be……

Sunday, March 29, 2009

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