Senator Carl Levin, D-MI, testified this morning on the dire need for the bridge LOANS (not bailout) that the D3 need.  Here are some comments from the senator.  Note that he corroborates the point I made regarding the unlevel playing field with respect to foreign governments aiding their domestic manufacturing, especially automakers.  The rest of this article is a quote from Senator Levin’s office:

Immediate support is needed to shore up our automotive manufacturing sector and to preserve the more than 2.5 million jobs directly and indirectly linked to the U.S. auto industry. This morning, I testified in front of the House Financial Services Committee to emphasize the need for Congress to take swift action on behalf of our nation’s automakers. Standing idly by as the financial crisis decimates our domestic manufacturing capabilities and pulls our fragile economy further into recession is unacceptable.

Throughout the world, the dire financial crisis continues to spur governments to provide assistance to their manufacturing industries, which are not able to obtain the credit they so vitally need to continue operations. Both Germany and the European Union are studying the possibility of providing support for their automotive industries. Australia has provided more than $4 billion in funding for its vehicle manufacturers.  Automotive manufacturers in China are already voicing their expectation of financial assistance from their government as well. “The Chinese government will undoubtedly support us,” says She Cairong, general manager of JAC
Motors, a Chinese automobile manufacturer. This quote appeared in a New York Times article this morning, highlighting China’s consideration of a plan to provide assistance to its domestic automobile companies.

The spotlight is now focused on Congress, which is considering the possibility of rescuing the industry from an economic downturn not of its own making. President-elect Obama has called the U.S. auto industry “the
backbone of American manufacturing” and said that the failure of our domestic automakers would be “a disaster” for our economy. President Bush, Speaker Pelosi, and both the Majority and Minority Leaders of the Senate agree that bridge loans for our domestic automakers are necessary at this time. I will continue to work with my colleagues in the Senate and the Congressional Leadership to come up with a plan that would provide auto manufacturers with the bridge loans they need to weather this financial storm.

You can read the transcript of my testimony before the House Financial Services Committee by clicking on the following link: [http://levin.senate.gov/newsroom/release.cfm?id=305099]. During these difficult times, I am doing everything within my power to convince the Congress to provide the bridge loans for the domestic auto industry that the President, the President-elect and the leaders from both houses of Congress support.
Sincerely,
Carl Levin

1 Comment »

1. 

   With regazrd to Senator Levin’s call for aid to the D3, as well as your own, I feel I must disagree with both of you.
   Yes, I believe General Motors and Ford (when or if they need it) should be provided with sufficient funding to go forward, that is of course, assuming they have really gotten their house in order.
   By getting their house in order, I mean that in both instances they must have demonstrated that they have trimmed their product lines, caused their banks and other creditors to reduce their debt obligations, and most important, reduced their Union contracts from several hundred pages to no more than a short story, one that eliminates the job bank and reduces or eliminates the majority of their legacy costs.
   By now you may have noted that I have left out the L1 (little one) Chrysler from this comment.
   As you know, I indicated several months ago that I believed Chrysler was little more than a house of cards waiting to callapse.
   Surprise! They have collapsed after repeatedly telling the world that they were in good shape.
   This, in and of itself, is little reason to throw them out with the bath water. The fact that they are owned by a bottom-fishing shark that is only interested in making a quick buck without spending one should surprise no one. Simply review the track record of Cerebrus. They boasted that they had all but stolen Chrysler from D-B. Well, thieves beget thieves. They had no business playing in the big’s with GM and Ford. Now, they have their tin cup in hand along with a sign in the other hand that reads “will work for a bail” and that’s what they should be given, a bail of hay.
   If Chrysler aka Cerberus, wants a hand, they should be forced to reach into their pocket and match dollar for dollar every red cent of taxpayer money that is given to Chrysler.
   While I am on this tear, I should also point out that as a Ford stockholder I am apalled by the fact that time after time, Ford is linked with GM and Chrysler. They went to Washington to support the industry and were beaten over the head by two of the biggest thieves in Washington Franks and Dodd. Need proof, simply dig into Fannie and Freddie. What gall!
   Washington will strike a deal with the automakers before the 25th that will only pass the problem on to the next administration, which, sadly, will bend over so far for the union, that I refuse to dignify their final position. I’m sure anyone with imagination can figure it out.
   Merry Christmas and Happy New Year Slandy Report. Keep the good work coming.

   Benjamin

   Comment by benjamin — 15 December 2008 @ 11:33 am

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