[Fandango]

OK, to answer the question. I spent an entire semester with a Phd economist. All we did was study the auto situation. There are things to be considered: We are talking about 3 auto companies that put out 10 major brands of cars (they put out more but we are talking about the most consumed), and have about 25% of market share in the industry. So lets say that there are suppliers that supplie parts for those 3 along with Toyota, Honda, Mazda, Lexus, Nissan, Accuara that manufacture their cars here in the states. Theres are a few more but thats an example. If you count the "Big Three" and the rest of them, its 100% of the market. As it is now, demand is low. Output and demand for those suppliers IS LOW. So what happens when you take away or reduce demand again by another 25% or at least take the entire dismal output and KNOCK off about 25%. That will hurt suppliers and their employees. But as far as hurting the other Auto Manufacturers such as Toyota, Handa, Mazda and so on....YES! Supplier have to raise their prices to compensate and then demand for their cars will go up and thus supply must match the desired demand at a higher price now comanded due to the suppliers' cost going up. Instead of paying a Camary price for a Camary, you will pay a Lexus price for a Camary and that won't fly with Consumers. Toyota, Nissan, Handa etc. don't get their consumers to buy them for anything other then afford ability and reliability. Thus the affordablity goes out the door and now you pay a heftier price tag for reliability.

In conclusion: You would pay a higher price for cars that where originally atractive to consumers because of economic value, when you remove it and you are forced to buy a car of same price but un equal value. (BMW 3 series $ = Toyota Camary $, however, BMW > Toyota any day of the week). People will buy what they see as a better value. These comanies, Honda, Toyota, Nissan, can't afford for the Big Three to go under. That is a fact.