A staggering 7.2 million paychecks rely on the American car manufacturers alone – more than many countries pay their entire population and the knock on effect on local economies of even small scale lay offs is highly significant. Bowling Green, KY and 200 workers at a local Corvette location are waiting to hear if GM will file for bankruptcy – the effect on the families involved is bad enough but the effect on the local economy of another 200 pay checks not being spent in grocery stores, malls, home improvements and the rest is just another hard nail being driven into smaller, localized economies already struggling with their own issues.

We have to keep positive – Chrysler has already filed for bankruptcy and if GM does, another wave of lay offs are going to happen BUT, and it is a HUGE BUT – perhaps this is what we need to do to get ourselves out of the mess and back on track fast!

The takeover of Chrysler by Fiat will introduce US manufacturers and suppliers to the small car technology that has made Fiat into such a giant around the world with a range of vehicles which are, well to be blunt, very small. Certainly very small compared to the US market!

Small may not suit the US consumer so well, but the technology which produces extremely high gas mileage certainly will and with the economies of scale such a merger is going to produce, prices for greener vehicles will fall (Japan indicates this right now with the new Prius hybrid enjoying 40,000 advance orders for this month alone) and the sooner we get American workers back on the production lines and putting their pay checks back into local economies.