“Madam Speaker,

“I rise in support of H.R. 7321.  With this vote today, the Congress is acting decisively to protect American auto workers and dealers in every Congressional district in the country and sets Detroit on the path to near-term and long-term economic viability. 

“We cannot forget that the auto industry is the backbone of our domestic manufacturing sector – the very sector which drives our economy.  Additionally, should one or more of the Big Three automakers fail, it would mean the loss of more than 100,000 jobs directly associated with the industry in my home state of Michigan and more than 3 million jobs around the country indirectly associated with the industry, such as auto dealers and auto part suppliers. 

“At the same time, I and my fellow Members in the Congress are wary of bailing out or rewarding companies that have so often pursued their own interests at the expense of the public good.  Whether it was fighting to undermine more demanding fuel efficiency standards or dragging their feel when it came to developing electric car and hybrid technology, the Big Three are in a large way responsible for the predicament they find themselves in today.

“Now, the executives of Big Three have come to Capitol Hill, not as titans of industry, but as caretakers of uncompetitive behemoths on the verge of collapse.  They are in no position to make demands of the American people and the aid offered by the Congress today reflects that reality. 

“I believe that the aid package offered to the Big Three here today extracts real, tangible, expansive reforms from the industry.  With this bill, we are sending a clear message to Detroit: If you are to survive, you must dramatically alter your business models, slim your corporate structure, spin off unprofitable lines, invest in the technologies of the future, and, above all else, cease producing the gas-guzzling steel chariots of the past.  There is no alternative to these reforms.  This bridge loan will only work if it truly serves as a bridge to the future and not as a cushion slowing inevitable decline.

“Over the last month, there has been much discussion about the need for a strong central figure to oversee the dramatic changes being undertaken by the auto industry. I called for the creation of such a position and I am heartened to see that an Auto Czar-type position is established with this legislation. 

“If Detroit does its part, the Congress can and will do much to make the American auto industry the world and industry leader it once was.  The $25 billion authorized in the 2007 Energy Bill and appropriated by the Congress to retrofit the Big Three’s aging factories was a step in the right direction.  It was my hope that this money would be left untouched during the current debate, so that it could continue to further the original purposes the Congress intended.  I remain hopeful that the $15 billion appropriated for the auto companies in this Act will be refunded when we return in January with a larger Democratic majority and a change-minded new President.

“Let me be clear – this bill is far from perfect.  I would have preferred that a provision that mandates that bridge loan recipients withdraw from their suit against California’s higher tailpipe emission standards would have remained in the bill.  Stripping this provision will accomplish little.  As my colleagues in the upper body, Senators Dianne Feinstein of California and Bill Nelson of Florida, have noted, GM and Ford have laid out business plans indicating that they intend to outperform the California fuel economy standards within a few years anyway.  The fact that blocking these suits would have absolutely no effect on the Big Three’s bottom lines makes these taxpayer subsidized lawsuits even more outrageous. 

“I also think we must acknowledge the failures in leadership which have contributed to the dire straits the Big Three find themselves in at this time.  The New York Times and others have called for the resignation of the Big Three’s CEOs, citing their complicity in the current crisis and their lack of foresight and competitive instincts.  I support this call because even now, there is tremendous evidence that the leadership of the Big Three just doesn’t get it. 

“Just today, in an interview on Fox News Channel, GM Vice Chairman Bob Lutz stated that Americans want more sports utility vehicles and large pickup trucks and that small vehicles are a bad investment.

“Finally, it should not go unnoticed that during the final legislative debate overseen by the 43^rd President of the United States, the current Administration chose to fight tooth and nail against strong measures aimed at furthering the fight against global warming and promoting energy independence.  We are only here today because Treasury Secretary Paulson could find $300 billion to invest in Wall Street financiers who manipulated securities and other financial tools for a living, but couldn’t find $15 billion to help working men and women who create products made and consumed here in the United States of America.  Instead of gracefully acknowledging the will of the American people, this lame duck President yet again fought against progress.  It is a fitting reminder of the politics that we leave behind with this vote today and, hopefully, of the brighter days that await us.

“I encourage my colleagues to support the bill. 

###12-10-2008###