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Crenshaw: “Auto Industry Needs a Plan to Guarantee Success”
December 11, 2008
(WASHINGTON, D.C.) -- Today Congressman Ander Crenshaw voted against H.R. 7321 – The Auto Industry Financing and Restructuring Act – the Democrat auto bailout bill that gave $14 billion in rescue funding to GM and Chrysler. The bill passed 237-170-1.
Rep. Crenshaw said, “No one wants to see the auto industry fail, but the only long term solution is to produce high quality vehicles that consumers want to buy. That should be the goal of any government action.”
The corporate heads of General Motors and Chrysler came to Capitol Hill in recent days in an effort to secure some $34 billion in government funding needed to keep the companies from filing for bankruptcy. “The Big Three” American auto companies have continued to post record losses in the past two years, watching their U.S. market share shrink, while Toyota and Honda have surged. In the third quarter alone, excluding special charges, Ford posted a $2.7 billion loss; GM posted at $2.5 billion loss; and Chrysler posted a $3 billion loss.
“We must demand the same innovation that made Henry Ford the pioneer of American auto manufacturing,” said Crenshaw. “Unfortunately subsidy doesn’t equal innovation.”
Although the bill passed in the House, its future remains in doubt in the Senate where it needs 60 votes to pass.
“Any government plan should protect taxpayers and auto workers and their families by allowing the “Big Three” to become competitive and viable again,” Crenshaw concluded. “Without major changes, it won’t be the last time the industry asks for a bailout.”