Approximately one hour after posting today’s comic, I received the following email from Senator Carl Levin:
Dear Mr. Adams:
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
If you would prefer not to receive future email updates from me, you can unsubscribe by clicking here: http://levin.senate.gov/contact/unsubscribe.htm
Due to the unsubscribe link, I can, of course, assume that I have somehow ended up on the Senator’s mailing list. I don’t actually recall signing up for it, and I’ve never received an unsolicited email from a Senator before, but that seems much more likely than someone in Senator Levin’s office giving a rat’s patootie about what my little comic says.
Anyways…
Senator Levin states that the D3 are failing simply due to the ongoing financial crisis. There is certainly an argument for that. Credit is currently very tight, and businesses operate on credit. IF GM can’t get loans, they can’t buy parts for the next batch of unsold autos. No loans. No parts. No cars. I get that.
However, that doesn’t change the fact that the companies have been run into the ground for the last few decades. The old policies don’t work and the companies have failed to adapt in a timely manner. Something needs to change and change now, or the 3 million jobs we save today, will just end up on the block again next week.
What are your guys’ thoughts?
Dave
