Press Release

Media Contact:
Jake Rubin 202.225.5665

KAGEN  VOTES  AGAINST  AUTO  BAILOUT

December 10, 2008
Washington, DC -- Congressman Steve Kagen, M.D. voted against the $15 billion taxpayer-funded auto loan bill today.  He has repeatedly called for separate consideration for each auto manufacturer because of the unique situation posed by private equity group Cerberus Capital Management, L.P which owns automaker Chrysler as well as NewPage Corporation, which recently closed two paper mills in Northeast Wisconsin putting over 750 people out of work.

“Congress should demand that Cerberus sell a portion of their holdings, such as our two idle paper mills in Northeast Wisconsin, to generate the cash they need to keep Chrysler afloat - instead of asking taxpayer's to pay for their company’s mistakes.  I will not vote to give any hard-earned taxpayer money to Chrysler until Cerberus-NewPage sells our paper mills or runs them - enabling my friends and neighbors to have their higher-wage jobs back,” said Kagen.

Kagen also echoed a suggestion from a member of his Economic Advisory Council.  The government could issue a voucher for $5,000 to anyone who buys a car or truck sold anywhere in America - be it foreign or domestic - to be matched by a $5,000 grant from the manufacturer.  This $10,000 expression of confidence in our country's economy may also restore confidence in lending and break the ice in credit markets across the nation.

“I believe we must do something to assist the auto dealers, their many suppliers, and the thousands of hard working men and women who have built our automobile industry, but I am not convinced that today's auto loan will work.  I believe there is a better way of doing things,” said Kagen.  “This bill did not differentiate between one manufacturer and the others.  Like patients suffering with pneumonia, General Motors, Ford and Chrysler, have the same disease, but require different doses of different remedies.  I am confident we will find a better way of addressing today's worldwide recession than the bailout process, for we cannot borrow-and-spend our way into prosperity.”

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