Lance Martin/Herald Senior Staff Writer

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Editor’s note:

This is the first in an ongoing series reflecting how Valley businesses are coping with the national economic slump. If you have an opinion, contact managing editor John Moeur at (252) 537-2505 Ext. 233 after 11 a.m.

ROANOKE RAPIDS — It’s not a matter of saving the Big Three automakers, Lawrence White says when discussing a potential bailout of the auto industry. Its significance runs deeper than that.

Congress and the federal government must act, the owner of White’s Chevrolet in Roanoke  Rapids believes. But they must act not to save the iconic names but “to save the economy of our country.”

Sales at his dealership have been good despite the sagging economy. “Sales here are actually strong. Service is doing really well. Parts, sales and service are relatively in-line with the previous year,” White said.

Company General Manager Fred Rice says the dealership is moving three to five cars a day.

That, however, comes with substantial markdowns, a 2008 Cadillac DeVille selling for $21,900 for a car that usually sells for $34,000 and a Cadillac Escalade selling for $49,800, a vehicle that is usually $64,000.

For people who have good credit, the timing to buy a new vehicle is right. “If you’re credit worthy there are no problems. It’s one of the best times to purchase the way the prices are.”

Michigan, however, is still reeling from plant closings, Rice said. “I talked to a friend of mine who moved from there and asked, ‘How’s Lansing?” They said, ‘Fred, you don’t want to go into there. It’s terrible.’”

White and Rice believe that not only could Michigan be further hurt, but the entire country could be hurt if there is no bailout.

Without a bailout, the nation’s manufacturing base could be endangered as an economic shroud envelops the nation. “You have suppliers that make brakes, airbags, tires,” White explains.

This leads to an impact on the import market, he says, explaining their suppliers are mostly the same ones who supply the Big Three  — Chrysler, Ford and GM — and tire manufacturers’ biggest customers are not retail but the Big Three and import manufacturers.

Then the question, White said, becomes one of if the Big Three close and the tire manufacturers close, “How do groceries get delivered? How do Mack trucks deliver to Wal-Mart?”

Eighty-percent of all import dealerships are parented by domestic dealerships, White said, meaning many domestic dealerships also sell imports. Under this worst case scenario, if the Big Three should fall, “Where do you take your import car?”

The politicians who are against the bailout, White said, do not realize the impact not doing anything would have on rural America. “These politicians do not live in rural America. They don’t care,” he said.

These politicians, he said, are coming from places like Philadelphia and New York, where, “If anything, a car is a burden. I don’t think the average Joe understands the domino effect. I hear comments they make foreign cars in America, but the money leaves to the parent country.”

The collapse of the American auto industry would lead to some estimated 3 million Americans losing their jobs, which would take its toll on the delivery of everyday household items to defense products.

 The problem tailspins from there in this worst case scenario down to law enforcement, fire and EMS but, says White, “This isn’t a fictional novel. This could be a real world scenario.”

If the bailout doesn’t occur, eventually White foresees private investment coming in.

If the bailout does occur, it will be a Band-Aid solution and the companies have to figure a way to fix the problem. “They have to fix the problem of high labor and lack of consumer support,” White said.