Stupak responds to auto industry bailout

NEWS RELEASES

CONGRESSMAN BART STUPAK 1ST CONGRESSIONAL DISTRICT OF MICHIGAN

U.S. SENATOR DEBBIE STABENOW D - MICHIGAN

U.S. SENATOR CARL LEVIN D - MICHIGAN

AND

CONGRESSMAN SANDY LEVIN 12TH CONGRESSIONAL DISTRICT OF MICHIGAN

************************* Stupak on White House loan plan for automakers

WASHINGTON – (December 19) - The White House announced Friday morning plans to offer General Motors and Chrysler $17.4 billion in short-term loans to prevent the domestic automakers from collapse.

U.S. Congressman Bart Stupak (D-Menominee) released the following statement:

“When the Senate failed last week to reach an agreement on short-term loans for the domestic automakers it left a lot of uncertainty for dealers, suppliers and the millions of workers in auto-related jobs across the country.

"President Bush’s announcement that the administration will tap into the Wall Street bailout funds to help the auto industry was welcome news.

"I commend him for stepping up to help the automakers and middle class Americans whose jobs depend on the auto industry at a time when Senate Republicans were willing to let the automakers collapse.

“Although the White House plan includes targets for concessions by workers, I was pleased to see that the administration has appropriately left it to the auto companies, United Auto Workers and other stakeholders to work out the details.

“Today’s announcement is a significant step toward restoring our domestic auto industry and the American middle class, but much work remains.

"The American auto manufacturers produce some of the best vehicles in the world.

"They have suffered disproportionately from the recession and this loan will allow them the opportunity to reorganize and retool.

"This is the first step on the road to long-term sustainability for our domestic auto industry.”

************************* Stabenow statement on provisions in the auto rescue package

WASHINGTON - (December 19) - U.S. Senator Debbie Stabenow (D-MI), today made the following statement regarding provisions placed in the administration’s auto rescue package:

“This morning, the White House has been characterizing the bridge-loan package as simply having goals for worker concessions.

"Unfortunately, now that we are seeing specifics of the proposal, this is simply not the case.

“These provisions raise serious concerns regarding unfair, punitive conditions being place on the backs of workers.

"The same workers that have already made historic concessions.

"It is very unfortunate that as part of the good news, of this important bridge loan, this proposal unfairly singles out workers.

“I look forward to working with president-elect Obama in the new year, and my colleagues in the Senate and House, to make this a better package that is fair to all parties involved, including middle-class workers.”

************************* Statement from Senator Levin and Representative Levin on auto bridge loans

WASHINGTON – (December 19) - Senator Carl Levin (D-Mich.) and Representative Sander Levin (D-MI) issued the following statement today regarding the auto industry bridge loans announced by President Bush this morning:

"The action to provide emergency loans to the U.S. auto industry announced this morning by the President will provide a bridge to the future for the industry and for millions of working families in communities across America.

"It gives the industry breathing room to cope with the global financial crisis and take the restructuring steps essential to return to economic health.

"It also avoids an unnecessary blow to our reeling economy and provides a shot in the arm to our nation’s manufacturing sector.

"The current crisis facing our domestic auto industry was brought on by factors beyond its control.

"Automakers around the world are facing similar challenges, and from Asia to Europe to Latin America, foreign governments have stepped up to keep their automakers from failing.

"Today’s action appropriately rejects the notion of bankruptcy.

"In addition to the specific actions listed under the restructuring plan, the White House documents list additional subjects which the companies are to use their best efforts to achieve.

"The president was wise to set those restructuring targets as non-binding goals which are subject to negotiations and which the negotiators can deviate from.

"The daunting challenge of restructuring the U.S. auto industry to achieve a plan for financial viability will require sacrifices by all of the stakeholders in this process in the next three months.

"Now it is up to president-elect Obama to carry forward the plans for the support and recovery of our domestic auto industry."

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