Labor costs, enormous pension and health care liabilities and inefficient production have all contributed to the current crisis in the auto industry.  But, Big Three executives are putting the blame entirely on the economy and that does not add up, especially when other car companies are staying afloat. They are not taking responsibility for what has been in the making for years.  Instead they are looking to you, the taxpayer, to bail out their bad decisions and are blaming it on the economy.

Under the terms of this proposal, I would not be surprised if we find ourselves and the domestic auto industry in the same situation six months or a year from now.  There is nothing in this proposal to prevent the same problems from returning to this industry in the future.  We have little evidence that this $25 billion will do anything to promote the long-term success and competitiveness of domestic auto manufacturers.  However, the Senate is under enormous pressure from that industry to provide the money “no-strings-attached.”  Instead, I ask my colleagues to resist the allusions of pending economic disaster and carefully consider this proposal.

If a small businessman took this package to a bank with a request for a $25,000 loan, the banker would immediately send him back to work on a legitimate business plan. Small business owners jump through more hoops for a few thousand than the auto industry’s $25 BILLION. The auto industry with their experts and analysts should know better and do better. They should be embarrassed with where they are and how poorly their request is prepared.

A $25 billion bailout is not the answer and automakers should do what it takes to restructure instead of seeking billions from taxpayers.

This entry was posted on Wednesday, November 19th, 2008 at 1:30 pm and is filed under Uncategorized .