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(Washington, D.C.) Congressman
Tim Ryan today asked House Speaker Nancy Pelosi and House Majority Leader Steny
Hoyer “to provide additional financial assistance for the U.S. auto industry.”
This comes in response to a steep slowdown in auto sales, pending layoffs at
Lordstown and other auto plants around the nation, and the credit limits faced
by suppliers and dealers. The text of the letter follows:
November
7, 2008
The
Honorable Nancy Pelosi The Honorable Steny Hoyer
Speaker
of the House of Representatives Maj. Leader, House of Representatives
H-232,
United States Capitol H-107, United States Capitol
Washington,
DC 20515 Washington, DC 20515
Dear
Madame Speaker and Democratic Leader Hoyer:
Thank you
for your continued work to ensure stability and stimulate growth in our
domestic auto industry. As you know, approximately 5 million jobs and the
American economy at large depend on the U.S. auto industry.
Unfortunately,
the U.S. auto industry has been especially hard hit by the credit crisis.
Carmakers can’t get credit to complete their restructurings and put new
advanced technology vehicles into production. Customers can’t get credit for
new cars and other purchases, and consumer confidence has fallen to an all-time
low. Suppliers are losing business and can’t get credit to keep them afloat
until the industry recovers. Dealers can’t get credit to finance inventory and
other routine business needs.
On
Friday, General Motors, which employs approximately 5,400 employees at the GM
Lordstown Assembly plant and GM Lordstown Metal Fabricating plant in my
congressional district and indirectly supports thousands more employees in the
region, reported a net loss of $2.54 billion for the third quarter. As a
consequence, the automaker has announced that 1,060 workers at those plants
will be laid off.
Put
simply, without immediate government intervention, GM’s cash position will not
be enough to keep the company going through next year. The collapse of GM or
other major automakers would result in a devastating economic and competitive
scenario for the nation.
As we
move forward with an economic stimulus package when Congress returns in
November, I respectfully urge you to provide additional financial assistance
for the U.S. auto industry. Such assistance will allow GM to continue its
development of advanced fuel efficient cars and ensure that advanced vehicle
batteries and battery systems are developed and produced in the United States.
I look
forward to continuing to work with you to ensure the long term health of the
American automotive sector.
Sincerely,
Tim Ryan
Member of
Congress
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