Washington, Tuesday, December 09, 2008 -

As Congress reconvenes in Washington this week to consider an auto industry assistance plan,Congressman Tim Murphy (PA-18) urged Speaker Pelosi and House Financial Services Committee Chairman Barney Frank to require any federal aid package for American automakers be used only to help domestic factories and workers in the United States. 

“This issue is a non-starter. Any government loan or subsidy for the auto industry must only be used to assist U.S. operations and American autoworkers, not used to beef up foreign operations,” said Murphy.  

In the November 24th edition of the Latin American Herald Tribune, Jaime Ardila, the President of GM Brazil-Mercosur outlined plans to "complete the renovation of the line of products up to 2012." According to article, funding for the GM Brazil-Mercosur operations will come from the package of financial aid that the manufacturer will receive from the U.S. government.

In a letter drafted by Congressman Murphy and co-signed by his colleagues, which was delivered this afternoon to the House Leadership members, he urged any legislative package include a ban on U.S. tax dollars being used to invest in overseas operations.

“We must build guarantees into legislation that ensures that factories in the United States will be the beneficiaries of any federal aid package, not other countries.  Further, we would recommend that all parts for domestic vehicles be manufactured in the United States, not China, Mexico, Japan or Canada.  We need to be working to create jobs for Americans, not sending our domestic auto business overseas.  During troubled economic times, the best economic stimulus is a job.”

Text of Letter Below: 

Speaker Nancy Pelosi                                                 Chairman Barney Frank
Speaker of the House of Representatives                     House Financial Services Committee
H-232, The Capitol                                                     2252 Rayburn House Office Bldg
Washington, D.C. 20515                                              Washington, D.C. 20515

Dear Speaker Pelosi and Chairman Frank:

Thank you for your commitment to continue to work with our domestic automakers as they face a serious economic downturn.  We know that each of you understands what is at stake for our country and for American workers if we allow these industries to fail.  We applaud your ongoing commitment as we work to find a solution to this problem.

We write to bring your attention to a November 24, 2008 report in the Latin American Herald Tribune which outlines plans by General Motors to invest $1 billion in Brazil in order to avoid problems the automaker is facing in the United States. According to Jaime Ardila, the President of GM Brazil-Mercosur, the $1 billion investment would come from funding the automaker would get from the United States federal government and will be used to "complete the renovation of the line of products up to 2012."  We write to urge you to ensure that any federal aid package for domestic automakers be limited to beneficiaries in the United States, not used for factories and workers overseas.

With unemployment numbers at 6.7% for the month of December and large employers, like AT&T, Viacom, DuPont and Avis promising more layoffs, we need to be working to ensure federal funds for domestic companies stay in this country.  It is imperative that any government loan or subsidy is used to help U.S. operations and American workers, not used to beef up foreign operations. 

We must build guarantees into legislation that ensures that factories in the United States will be the beneficiaries of any federal aid package, not other countries.  Further, we would recommend that all parts for domestic vehicles be manufactured in the United States, not China, Mexico, Japan or Canada.  We need to be working to create jobs for Americans, not sending our domestic auto business overseas.  During troubled economic times, the best economic stimulus is a job.

Again, thank you for your commitment to finding a solution to this economic crisis.  We look forward to working with you. 

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