Will GM bankruptcy affect the bluegrass?

By: Dave Spencer Email
By: Dave Spencer Email

President Barack Obama calls it, "A new lease on life for GM."

University of Kentucky professor Ken Troske calls it uncharted waters, "We've never seen anything like this."

The U.S. is no stranger to bankruptcy, Troske says the airline industry has even had companies emerge successfully.

He says the difference this time is government intervention. Saying typically the U.S. government doesn't play a role in financial decisions.

Troske says the danger there is adding a political element to the decision making process.

While it's unclear what a government led auto industry could mean, Troske says he has a good idea how it could affect Kentucky.

He says, "I would imagine we loose some dealers, and people will have to drive farther to buy new cars."

That's considering Kentuckians are in a position to buy new cars.

"We have an unemployment rate close to 10% and we're hemorrhaging manufacturing jobs."

According to Obama, a move towards bankruptcy is working for Chrysler, saving tens of thousands of jobs for the automaker.

The president cautions however, the turnaround for GM might take longer. Leaving some to wonder how long we can wait.

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  • by Lisa Location: Georgetown on Jun 2, 2009 at 02:40 PM
    We are losing our freedom day by day...let the free markets prevail and let the bad companies fail. Toyota hires American workers, let GM fail and Toyota grow! Toyota builds plants and suppliers in America and they're good enough to their workers that they don't need a union! Say no to government bail outs before the whole country is bankrupt and unemployed!!!
  • by Anonymous on Jun 2, 2009 at 11:58 AM
    GM brought this situation upon themselves, so did Chrysler. GM is broke because their products were inferior to imports, they had too many big trucks and suv's, not enough fuel effecient vehicles and they were badly out of line in terms of labor costs, etc. etc. The only problem with this whole situation is the gov't is getting involved and there is no guarantee they will recoup all of the taxpayer loan money. It's a risky proposition.
  • by Oscar Location: SassafrasI on Jun 2, 2009 at 09:10 AM
    Thirty years ago, there was an old saying that said, AS GOES GM SO GOES THE COUNTRY. At that time GM had 600,000 employees, Ford had 400,000 plus, and Chrysler had close to 200,000. now there is less than 125,000 between the three. No wonder they are broke and so is the United States. The goverment broke the auto industry along with FREE TRADE AND HEALTHCARE. This has affected everyone. Wages in the industrial world are 1980 wages, 30 years behind time. GOING TO GET WORSE UNTIL THE GOVERMENT DECIDES TO HELP THE AMERICAN INDUSTRY OUT BY CHANGING A FEW LAWS AND GETS RID OF THE LOBBIST IN WASHINGTON. BORN IN AMERICA, RAISED IN AMERICA,,,, BUY AMERICAN, YOU WILL THEN DEFEAT WASHINGTON AND ALL THE MUDDY WATER THAN THEY CALL BRAINS.
  • by CJ Location: Ashland, KY on Jun 2, 2009 at 08:16 AM
    Where were the people over this entire country when this nation was losing the textile industry, the steel industry, the American farmer, etc.? My family went through manufacturing job losses three times. We started over three times. The only people who ever helped bail us out were our parents, and they provided groceries and school clothes so our kids would not feel the crunch. My family knew years ago that this country could not survive long with cars that cost as much as a house? Wake up people, because right now we pay as much for health insurance as a house. What does this mean? Simply, in a few years if there is no health care reform and prices are not controlled, NO ONE will be able to afford health care, and those of us that cannot will be herded into some substandard clinic where we all will be treated inhumanely and only given comfort care as we die agonizing deaths while our loved ones watch. This happens now to those who only have Medicare/Medicaid. SUBSTANDARD!
  • by PLEASE on Jun 2, 2009 at 05:16 AM
    OF course its going to effect the Bluegrass. More people will be out of work.
  • by LittleWoman Location: Wheelwright on Jun 1, 2009 at 07:59 PM
    What does Obama care about saving money anyway, he took his wife on a 24,000 date to NYC, life is good for him, crap for everyone else. I mean my lord she spent 500 dollars on a pair of shoes to walk the first mutt in!!!!!!!!!!


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