Sen. Brown supports automotive bailout
Wednesday, November 19, 2008
U.S. Sen. Sherrod Brown on Wednesday, Nov. 19, criticized the Bush Administration, the Treasury Department and some in Congress for their refusal to support a Democratic bill calling for $25 billion in loans for domestic automakers.
The Ohio Democrat said failure to provide bridge loans to the Detroit Big Three automakers to help them avoid financial problems could lead to job losses for automakers and their suppliers and affect the pensions of retired autoworkers.
"If they don't receive assistance, auto suppliers, auto dealers, related industries in every state will soon feel the impact," Brown said.
Brown called it "unfathomable" that Treasury Secretary Henry Paulson has provided hundreds of billions of dollars in loans through the Troubled Asset Recovery Program to large banks and insurance giant AIG, but won't make loans to the auto industry.
Brown's remarks came a day after leaders from Ford, General Motors Corp. and Chrysler as well as the United Auto Workers labor union told the senate banking committee they needed bridge loans to prevent financial problems that could lead them into bankruptcy.
Also Wednesday, Brown said he wants the Senate to approve a measure that would extend federal unemployment benefits by seven weeks nationwide and extend them by 13 weeks in states where the jobless rate exceeds 6 percent.
This would include Ohio, where the unemployment rate has surpassed 7 percent, he said.
A Senate vote on an automotive bailout plan, which also would extend jobless benefits, could come as early as Thursday, but it clearly lacks the necessary support to advance.
Also on Nov. 19, governors from eight states, including Ohio Gov. Ted Strickland, issued a letter calling upon U.S. Congressional leaders to approve the Democrats' bill.
The auto industry in Ohio employs 127,000 — including 28,000 automotive assembly workers who are employed by both foreign and domestic manufacturers, according to the Ohio Department of Development. In terms of jobs, Honda is Ohio's largest automotive manufacturer, followed by General Motors and then Ford.
Congressional Republicans support a White House plan that would allow auto companies to draw emergency loans from the $25 billion fuel-efficiency fund.
The GOP approach, being crafted by Sens. Kit Bond, R-Mo., and George Voinovich, R-Ohio, would require the automakers to plow back into the fund repaid loans, interest and income from equity stakes.


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