No economic sector has been harder hit by the recession than the automotive industry, and last week brought pivotal developments for the two most beleaguered U.S. automakers.

General Motors announced it would cut its dealerships by 40 percent and eliminate its Pontiac brand. Chrysler, meanwhile, said it would declare bankruptcy so that it can reorganize and emerge in a probable partnership with the Italian automaker Fiat.

The American public has a strong interest in the vitality of the automotive industry beyond individual vehicle purchases. The industry is a major employer with supplier links that have a huge impact on the national economy. That's the principal reason the federal government has already pumped $25 billion in aid to Chrysler and GM and leaned heavily on them to streamline.

Local auto dealers also play a major role in employment and generation of tax revenues in the communities in which they're located. The loss of an auto dealership is a blow to local economies.

Northeast Mississippi is already feeling some of the impact of the GM closures. Monroe County will lose one of its two GM dealerships. Other dealers remain hopeful that they will be spared.

Chrysler dealers in the region, meanwhile, said the bankruptcy would provide a measure of stability by ensuring that Chrysler will remain in business. They're optimistic about the future given that assurance.

Northeast Mississippi has a significant stake in keeping a high number and wide variety of strong local auto dealers in profitable mode. It's worth remembering that local jobs and tax revenue are part of the reason those much-maligned auto bailouts have been put in place.

U.S. automotive companies aren't the only ones that have taken a beating in the tough economy. Toyota's sales have plummeted, and completion and production dates at the company's $1.2 billion plant at Blue Springs have been put on hold as a result.

A failing U.S. automotive industry is no help to Toyota. In fact, if GM and Chrysler were to go out of business, the supply chain that also serves foreign automakers in the U.S. would be disrupted and Toyota, Nissan and other automakers with a southern presence negatively affected. The health of the automotive industry, both domestic and foreign, is intertwined.

We will eventually come out of the current recession. People will start buying cars again. The assembly lines - including the one planned in Northeast Mississippi - will begin or resume production and expand employment.

In the meantime, tough decisions are being made about how best to position the auto companies to take full advantage of that turnaround. It's to be hoped that Northeast Mississippi comes out with minimal scars in the transition.