A2: Auto Industry

The Chicago Tribune cites local sources in its article about the debate over whether to bail out the auto industry or let companies declare bankruptcy: “The Center for Automotive Research in Ann Arbor, Mich., which has close ties to the industry, produced a widely cited report warning that because the auto business is so interwoven, a single bankruptcy among Detroit’s Big Three threatens to topple the entire industry and beyond….But critics note that the report paints a doomsday scenario by assuming that a bankrupt company will eventually shut down because spooked consumers will stop buying its cars and trucks. Many companies, they point out, have survived Chapter 11 reorganization and emerged as stronger competitors.” [Source]