December 11, 2008 - 08:45
News: Ohio

Strickland: Auto bailout or depression

Gov. Ted Strickland said if the U.S. auto industry fails the country will slip into a depression.

Appearing on MSNBC's "Morning Joe" on Thursday, Strickland debated giving loans to General Motors and Chrysler with Gov. Mark Sanford (R-S.C.). Strickland said the failure of the Detroit Three would collapse auto suppliers as well.

"I believe we are in a national recession that could...go into depression if this industry fails,” he said. "I believe those who are opposing this bailout are playing with fire."

Wednesday the U.S. House approved $14 billion for GM and Chysler. The vote goes to the U.S. Senate next. 

Ohio is part of a fragile auto supplier network scattered throughout the U.S. that needs protection, Strickland said.

"And if they were to collapse, we would see the meltdown of the major manufacturing of our nation’s economy and I don’t think we can allow that to happen," he said.

Strickland said he didn't think the bailout debate is a fight between the North and South, or union and non-union manufacturers. To wit, he said Honda executives shared their concern about the supply chain recently.

Honda has facilities in Marysville, outside of Columbus.

Thursday the U.S. Department of Labor reported 6,658 Ohioans more Ohioans claimed unemployment insurance due to "layoffs in the automobile and manufacturing industries."

Justin Miller is a PolitickerOH.com Reporter and can be reached via email at noreply@politicker.com.

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