(Source: The News & Observer)

By Jonathan B. Cox and Barbara Barrett, The News & Observer, Raleigh, N.C.
Nov. 14--North Carolina is no Michigan, but the auto industry recession is punishing this state.
Although North Carolina officials have never attracted a major assembly plant, the state is a large supplier to automakers. Roughly a quarter of manufacturing employment is tied to motor vehicles, including cars, buses and heavy trucks.
That underscores the importance of discussions in Washington, where politicians are arguing over a bailout for the domestic auto industry. The Big Three -- General Motors, Ford and Chrysler -- are pleading for assistance, and Democratic leaders are pushing a $25 billion rescue plan.
Without aid, GM, which reported a $2.5 billion quarterly loss last week, says it could run out of cash before year's end.
"This industry has been brutalized," said James Sampson, chief executive of Blue Water Automotive Systems. "It's horrible. It's just horrible."
Until August, the Michigan company made cup holders and other plastic parts at a Burlington plant for Ford's F-150, Focus and other vehicles. Forced into bankruptcy, it almost closed the factory. A buyer emerged, but the business was most interested in the equipment and the lease.
Of 120 Blue Water employees in Burlington, only six were taken on by the new company.
The auto industry has long been a pillar of the U.S. economy. The Big Three employed about 240,000 U.S. workers at the end of last year, and international automakers employed 113,000. Factor in suppliers, and the tentacles of the companies stretch into almost every state, giving them substantial political clout.
The motor-vehicle sector has been contracting in North Carolina since 2005, with total employment falling to 130,155 by the end of last year. The global economic downturn has only accelerated the decline, as tight credit and a pullback in consumer spending have eroded car sales.
In October, Guilford Performance Textiles said it would close a Fuquay-Varina plant that made fabric for car interiors. That put as many as 115 employees out of work. Last week, ASMO North Carolina, which makes motors to power windows and air-conditioner blowers, said it would shut down plants in Thomasville and Mount Airy. Combined, those actions will affect 202 employees.
Businesses in related industries are also suffering. For example, Goodyear, which employs 3,000 in Fayetteville, idled the plant there for two weeks in August because demand for its tires has slacked off.
The pain is not limited to manufacturing. Auto dealers are struggling as consumers, gripped by uncertainty about the economy, put off large purchases.