December 10, 2008: House Passes Auto Industry Financing and Restructuring Act

Washington, DC - Congressman Charlie Gonzalez (TX-20) today joined a bipartisan group of lawmakers to pass HR 7321, the Auto Industry Financing and Restructuring Act, legislation which provides for $15 billion in short-term bridge loans for struggling American automakers.  The bill was crafted with a focus on accountability provisions, protecting taxpayer dollars with strict oversight over the industry's restructuring process, and a commitment to fuel efficiency.  According to a recent report filed by the Economic Policy Institute, a shutdown of one or more U.S. automakers "could eliminate up to 3.3 million U.S. jobs."  The report states that Texas could stand to lose over 55,000 jobs if General Motors Corporation were to shutdown and up to 200,000 jobs if the entire industry were to fail.  Congressman Gonzalez issued the following statement supporting the legislation: "This temporary bridge loan was necessary to keep our struggling automakers afloat during one of the worst economic downturns our country has seen since the Great Depression.  Inaction would have resulted in immense job loss that would only make our economic troubles worse and that was not an option." "The impact that the automotive industry has on our entire economy is tremendous.  Not only is the industry a key pillar of American manufacturing, but its success is also critical to our national security and future economic innovation." "This legislation was necessary for the industry in the short term while they assess long term strategy for future viability.  The industry is facing serious challenges partially because they were ignoring the threat of foreign competition for too long.  American car companies were not producing a competitive product and their sales have declined accordingly over time, and we are now seeing the results of their errors."  "This temporary assistance will hopefully put our domestic automakers on track to transforming their industry into one that is viable and competitive in the future.  The impact of the industry's failure would be devastating, but their future success will play a critical role in our country's economic recovery." ###