Car dealers: Other industries will falter if Big 3 collapse
New Jersey car dealers say they are just one group among the victims of the failing automobile industry, which could impact many other businesses around the state.
Remsen Straub, whose family owns three car dealerships in Keyport and Hazlet, says he is trying to keep GM, Chrysler and Ford in business by ordering cars to sell at his dealerships. He has been unsuccessful because he is unable to borrow money from banks worrying that the collapse among the Big Three automakers is imminent.
Straub says he worries not only about his own businesses, but about the local economy of Keyport and New Jersey. He believes many other industries will falter as the car dealerships go out of business.
?What happens with the automakers won't just be felt on New Jersey car lots,? Straub says. ?It will have a ripple effect on New Jersey main streets."
According to officials, Straub pays $145,000 in combined school and local taxes each year. In addition, Straub says his company will have to reduce advertising by 90 percent, which will impact many other businesses in the local area.