THE crisis in the US auto industry seem to be taking on a domino effect. A number of countries around the world have been affected, and now it appears it is our turn. Satisitcs show that our auto industry is facing a meltdown. Because of high rate of inflation, the people are finding it hard to go in for new cars; while auto spare parts have also become more expensive. The external factor apart, major domestic elements, including an ailing economy, unstable price of the crude, unending inflationary spiral and high cost of business, also impinge upon the situation. Besides, people are hesitant to consider the option of car leasing as the increased prices have hiked up the mark-up rates. However, right lessons ought to be learned from the USA's automobile industry. The US government intends intervening to bail it out by injecting hundreds of billions of dollars into it. The government should know that the revival of the car industry is as important as the rest of the economy. A number of sectors of economy work in concert with this industry to make it a success and provide employment to thousands of workers.