Since I moved over to the dispatch desk in November, and with me going about six weeks without a car in the winter, my attention shifted away from gas prices. They were running pretty good at about $1.85 when I last drove a cab around Thanksgiving.
Now I walk in, and gas is nearly $2.50 per gallon with credit card; $2.40 without. This shows there's really going to be trouble brewing, to where the 2008 debacle which we thought was bad will look like a walk in the park.
I still claim that last year's run to $4 gas was the last straw that began the auto industry's woes. Then the prices went down, but that was before the talk about government bailout & bankruptcy restructuring became common. Now we read that the feds are sending bailout payments around $7 billion to both GM & Chrysler-Fiat. And gas is on the fast track to breaking the $4 or $5 barriers by July 4th.
Michigan unemployment is at 12.9%. With factory and supplier shutdowns, some are predicting 18-20% unemployment by Christmas. Chrysler-Fiat factories are to be idled 90 days during the summer... just perfect timing for high gas prices.
What will happen then? Probably another quick re-think among auto management, more stringent standards from the Obama administration, less consumer confidence, and yet another blow to Michigan: a state that's swimming in red ink already.
The book of horrors may just be getting started.
P.S.: I can't help but note my father worked at Ford for 31 years. Hmmm... haven't heard any requests for bailouts from them, have we? I guess my father knew where to work!
