Ford Dealers Discuss Impact Of Industry

Ford dealers from throughout central Florida gathered in Bartow on Friday for a press conference to discuss the national, statewide and local impact of the U.S. automotive industry.

Brian Jarrett, Ford National Dealer Council chairman, said the dealers are in support of the $34 billion bridge loan being debated by Congress.

"While Ford remains strong, uncertain times require a safeguard, and should Ford need to access this loan, it will be repaid with interest," said Jarrett, who also owns several central Florida dealerships. "We support the bridge loan because the auto industry is interdependent. The failure of a domestic auto manufacturer would trigger a ripple affect across suppliers and dealers."

The Big Three supports more than 4.5 million corporate, dealership and supplier jobs in the U.S., so the loss of a domestic auto manufacturer has the potential to affect millions of people in lost jobs, healthcare and pensions. In addition to the jobs and benefits Ford, GM and Chrysler provide, the auto industry pays $1.2 billion in state taxes each year. But the tax contribution doesn't end there - the federal government stands to lose over $156 billion over three years if the U.S. auto industry were to collapse.

While it is clear the industry has an impact on the entire nation as a whole, it will be small communities who are hit hardest if one of the Big Three goes bankrupt. Auto dealerships have become integral community partners-like Bartow Ford, who donates more than $50,000 to local schools and charities every year. If the parent companies for these local dealerships are allowed to founder, it stands to affect more than just employees.

"Each of the Ford and Lincoln-Mercury dealers you see here is committed to giving back to our community, and our community has come to depend on us," said Benny Robles, president of Bartow Ford. "The decision on this bridge loan affects every one of us in some way."

CEO Alan Mulally presented Ford's business plan to Congress last week, which includes provisions for how Ford will reduce costs and improve efficiency. The automaker began making improvements to its business in 2005 and is on target to reduce its costs by $5 billion by the end of 2008.