Dealers say economy will take a hit

BOISE -- The CEOs of Detroit’s big three automakers are set to face Congress again today to plead their case for bailout loans.

General Motors and Chrysler are bleeding money.  They say without the loans they will fail.

Local automobile dealers we spoke with agree that help from the government is vital in saving one of the backbones of American industry.

The three auto makers are asking for $34 billion from Uncle Sam.  GM wants $18 billion, Chrysler $7 billion and Ford is asking for a $9 billion line of credit if the recession lasts longer than expected.

"If GM goes bankrupt, then the suppliers go down with them and then it brings everyone else to a standstill.  So it's very beneficial for Ford to go along with this bailout," said Dan Wiebold Jr.

Dan Wiebold Jr. has been selling cars for over 20 years and says dealers across the country are taking an unprecedented hit.

"They're closing up at roughly two a day which is 60 a month nationwide," said Wiebold.

Wiebold chalks up the loss to three major roadblocks.

"It's the stigma of past reputation and whether a person can get financing and have confidence to be able to make the payments," he said.

GM is planning to cut 20 percent of its workforce, close nine factories, sell or close three brands such as Hummer, Saturn and Saab, and possibly eliminate over 1,700 dealers. 

"Times change and if there's not a viable business plan for the products they have with those lines, then they have to make some tough decisions," said Grant Petersen.

Grant Petersen owns Bronco Motors and says competition is vital to the auto industry.

"That doesn't help me because my friends across the street or down the road lose their franchises.  That's not good for customers. That's not good for the economy or for the employees," said  Petersen.

Local dealers argue the $34 billion bailout pales in comparison to the cost of unemployment, considering the millions of jobs linked to the auto industry.

"It is the last of America's industry.  Everything else is built overseas other than the automobile industry for the most part in the U.S.  It's kind of the last of the Mohicans,” said Wiebold.

Many lawmakers argue that letting auto makers go bankrupt will help them rebuild from the bottom up.

But dealers argue that will only make things worse in the long run. 

This time around the CEO of the big three auto makers are driving hybrids to Washington after being mocked last month for flying in on private corporate jets.

In addition, they all say they'll work for $1 a year, cancel bonuses and slash merit raises in an effort to recharge the auto industry.