OHIO -- Ohio car dealers on Friday hailed President Bush's offer of $17.4 billion in emergency loans to beleaguered U.S. automakers. The news also gave hope to businesses whose future hinges on the health of the industry.
Local General Motors dealers like Bob McDorman in Canal Winchester told NBC 4 he believes the automakers will tighten their belts, but labor needs to recognize their salaries and benefits must come in line with what foreign car makers are paying employees in America, NBC 4's Candice Lee reported.
Mary Kay Zappia, owner of Salem Chrysler-Jeep in Dayton, said the bailout should keep car factories healthy and give dealers some extra business.
"We'll see probably a little bit of a bump from it, but it will take awhile," Zappia said.
At the four Serpentini dealerships in the Cleveland area, the sales staff was excited and relieved to hear the White House announcement, according to Bob Serpentini, whose patriotic pitches to buy American cars are a staple on local TV.
"We appreciate the opportunity to get ourselves in a position to be more than competitive with the imports and get ourselves fixed," Serpentini said.
He said the White House plan would make buyers comfortable that their new vehicles would have reliable service and warranties.
The Bush administration's offer of rescue loans comes in exchange for deep concessions from the carmakers and their workers. The government will have the option of becoming a stockholder in the companies, in effect partially nationalizing the industry.
"On behalf of all Ohioans, I am grateful the president stepped in to help thwart a disaster that would have sent our state over the cliff," said Sen. George Voinovich, R-Ohio. "The president has supplied oxygen to a patient fighting to get healthy through restructuring and becoming more competitive."
Michelle Dusseau, owner of Zinger's Food and Spirits near Chrysler LLC's Jeep plant in Toledo, is hopeful the bailout will help.
But there was no celebration among the staff at Zinger's, which has seen its business from workers at the Jeep plant drop off in recent months. Dusseau is still worried about the future.
"They work one week, then they're off two," she said. "It's really every week to week, and we don't know what's going to happen."
The Associated Press contributed to this article.
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