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December 11, 2008: Smith Voices Opposition to Auto Bailout Legislation |
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WASHINGTON, DC-Rep. Adrian
Smith (R-NE) today voted against legislation to provide $15
billion in government loans to three automobile companies - General Motors,
Ford, and Chrysler.
Declining car sales, increasing government mandates, and
higher overhead costs (compensation for unionized workers for American
automotive companies are estimated at $73.20 compared to Toyota's $48 per hour) have put the Detroit automakers in dire
financial straits.
The legislation also requires an appointment of a "Car
Czar" to authorize, allocate and direct the disbursement of funds to the auto
manufacturers from these previously authorized through the Energy Independence
and Security Act.
"Every American and every American
town is struggling. We need to enact policies which truly benefit every town,
not just Detroit. Auto companies need to revamp their
practices and must invest in new ideas such as energy research and sound
business management if they are going to survive. Otherwise we are heading down
a dangerous road of bailing out private institutions rather than letting the
market take its course," Smith said.
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