For much of the 20th century the vehicle industry was the symbol of American economic power, and the union representing workers on the assembly line was the guarantee that those workers would find a place in the growing American middle class.
But times have changed for the American automotive industry and its workers. Dire threats of bankruptcy face the three corporate giants whose cars and prosperity set the world standard.
And the once-mighty United Auto Workers union finds its membership alarmingly reduced, and the rich contracts that the UAW won for its members over the years may soon be shredded by the financial weakness of the car companies.
A few numbers tell the story. In the first nine months this year, the mighty General Motors, the largest carmaker in the world, lost US$3 billion. Its rival, Ford Motor, lost US$1.49 billion in the same period.
On each car that GM sells there is a loss of more than US$1,000. To stop the bleeding GM has announced that it will close assembly plants and cut 25,000 jobs. Most dramatically, it has reached an agreement with the UAW to cut US$3 billion out of its annual spending on health care for its workers, retirees and their dependants by making them pay part of the costs.
The cuts at GM will also be felt at Ford, DaimlerChrysler and parts maker Delphi, all of which are burdened by similarly rich health and pension plans for their UAW workers.