Michigan Congressional Delegation Urges Whites House to Take Quick Action to Help Automakers

Washington, D.C.  – The Members of the Michigan Congressional Delegation this morning sent the following letter to President George W. Bush, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. The Members urged the Administration to provide immediate emergency funding in the form of a loan to the domestic automakers.

“Earlier this week, the House of Representatives approved a plan that would have sent $14 billion in immediate aid to keep the auto industry afloat in the short-term. It is unfortunate that the Senate could not come to agreement on this matter,” said Dale E. Kildee (D-MI), co-chair of the Congressional Automotive Caucus. “Inaction is not an option – bankruptcy is not an option. The President and Secretary Paulson must use the authority granted to them to act quickly in providing TARP funds to American automakers.”

Below is the letter:

Dear President Bush, Secretary Paulson, and Chairman Bernanke,

We commend your efforts to work with the Congress to enact legislation that would provide assistance to the domestic automakers.  We share your disappointment that the Senate fell eight votes short of obtaining the sixty votes necessary to consider legislation negotiated with the White House and approved in the House of Representatives by a bipartisan majority that would have provided federal loans to the domestic automakers. 

As you know, the global financial crisis is crippling the availability of credit for the automakers, their suppliers, their dealers and consumers.  One or more of the domestic automakers now face the real possibility of failure before the end of the year unless financial assistance is immediately forthcoming.  This result will plunge our nation further into recession, add hundreds of thousands to the employment rolls in a matter of weeks, and deliver a crippling blow to the manufacturing sector from which it may never recover.  Other nations are acting to assist their automotive industries and the U.S. must do the same.

The Department of Treasury and the Federal Reserve have existing authorities they can use to give this vital industry access to the capital it needs to survive this recession, a position that was supported by Gene L. Dodaro, the Acting Comptroller General of the United States, in his testimony before the Senate Banking and House Financial Services Committees last week.  We appreciate your willingness to consider existing options available to you, including use of the Troubled Asset Relief Program (TARP).  Given the urgent nature of this crisis, we urge you to immediately use these existing authorities to extend loans to the domestic automakers and ensure their continued operations until the 111th Congress can convene on January 6, 2009 and pass legislation relating to the long term restructuring and viability of the domestic automobile industry. 

Sincerely,

Senator Carl Levin (MI)

Senator Debbie Stabenow (MI)

Representative Bart Stupak (MI-01)

Representative Peter Hoekstra (MI-02)

Representative Vernon Ehlers (MI-03)

Representative Dave Camp (MI-04)

Representative Dale E. Kildee (MI-05)

Representative Fred Upton (MI-06)

Representative Michael J. Rogers (MI-08)

Representative Tim Walberg (MI-07)

Representative Joseph Knollenberg (MI-09)

Representative Candice Miller (MI-10)

Representative Thaddeus G. McCotter (MI-11)

Representative Sander M. Levin (MI-12)

Representative Carolyn C. Kilpatrick (MI-13)

Representative John D. Dingell (MI-15)