Automaker Woes Affect Wilson

Auto bailout talks affect Wilson

As Congress gets ready to take a second shot at the major U.S. automakers next week, reminders of the trickle down affect that the auto industry has are being felt locally.

In the last week, The Daily Times has had two stories about separate Wilson companies whose operations are being affected by the U.S. car industry and the struggles that it is going through.

On Saturday, we ran a story that said Carolina Forge had been forced to lay off 27 people because of problems in the national car industry.

The company is a supplier to the automobile industry, and it has seen that business suddenly evaporate.

"For the first nine months of the year, were on a record pace," said Bill Casella, the plant manager for Carolina Forge. "We were on our way to having the best year since we bought the business in 2001."

Then, in the last two weeks, business came "to an abrupt halt," he said.

Carolina Forge, which is located at 2401 Stantonsburg Road and now employs 124 people, buys raw steel and makes auto parts used by all car manufacturers, besides Honda, in America, Canada and Mexico.

"I think about everybody in the industry has had layoffs and curtailed production at some point," Casella said.

Fortunately, one of Wilson's largest empolyers, Bridgestone Firestone, has been able to avoid layoffs in the face of the current auto industry problems.

But Tuesday, plant manager Jim Pridgen told the Daily Times that a lack of demand for new car tires has caused Bridgestone Firestone to shift gears on its production schedule.

The plant was to operate this year in the days following Christmas but will now shut down Dec. 28-30. The plant will be closed from Dec. 24 through Jan. 1.

"We want to get our inventory back in line," Pridgen said. "People just aren't spending money right now."

Both Pridgen and Casella expect the market to rebound, and both men said they are hopeful that they will be able to add jobs soon.

But both stories also help illustrate how important the auto industry is to the national and local economy and why what is happening with the auto bailout talks in Washington could have an impact on Wilson.

According to many job estimates, the big three carmakers employ nearly a quarter-million workers. An additional 730,000 others produce materials and parts for cars.

If just one of the automakers should declare bankruptcy, some estimates put U.S. job losses next year as high as 2.5 million.

Those numbers are too big to ignore and mean that all of us have a stake next week when the U.S. automakers get another shot to persuade Congress to give them $25 billion in loans.

Congress is right to demand significant concessions from GM, Chrysler and Ford in exchange for loaning them this money. But in the end, Congress may not have a choice if jobs as far down as workers at Carolina Forge are Bridgestone Firestone are on the line.