PRESS RELEASE

November 18, 2008

Congressman Gregory Meeks on the House Financial Services Committe Hearing

(WASHINGTON, DC)–The CEOs of General Motors, Ford Motor and Chrysler LLC appeared before the House Financial Services Committee, seeking support from Congress for a $25 billion loan package.  The industry is asking for cash to tie them over through the current downturn and is offering the government an equity stake in the companies if they get the help.

Democratic leadership including Financial Services Chairman Barney Frank and Senate Majority Leader Harry Reid are proposing amending the Emergency Economic Stimulus Act to allow the Big 3 American automakers to utilize money from the $700 billion set aside in October to help banks and Wall Street firms.

During the hearing Congressman Meeks, questioned the CEOs as to their plans for assisting the vast number of American auto dealers how are being ravaged in the current economic crisis. Said Rep. Meeks, “While my district does not have any automotive factories, it does have a number of auto dealerships with thousands of workers whose livelihoods are in jeopardy.  I am supportive of the concept of a loan extension to GM, Ford and Chrysler, but I would like assurances in any measure that would guarantee the fiscal soundness of our dealerships,” said Congressman Meeks.

The nation’s almost 20,000 franchised automobile dealers have a significant economic impact upon local communities across America.  One in 10 American jobs is linked to the auto industry.  GM, Ford and Chrysler support about 5 million American jobs, including auto parts manufacturers and auto dealers, across all 50 states.  An estimated 3 million jobs would be lost in the first year if the American automakers collapsed—nearly three times the jobs lost economy-wide this year.  In addition, more than 1 million American workers and retirees are directly employed or supported by the major automakers, with 2 million Americans getting health care benefits through the auto industry. 

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