U.S. Rep. Harold “Hal” Rogers (KY-05) released the following statement regarding the Democrat’s Auto Bailout Package:

“For too long, the American automotive industry has avoided making the tough choices necessary for survival.  Struggling American companies, large and small, have employed long-standing procedures through Chapter 11 reorganization to ensure their continued viability, and I believe that nothing short of that is needed for the Big Three today.  Many ailing companies go through this process every year, and come out from the other side more successful and efficient.  The steel and airline industries are but two examples of the long-term benefits of this process.  Massive restructuring is long overdue for the auto industry and there is no greater time than the present for these billion dollar companies to renegotiate with lenders and shareholders, correct costly pension and benefit programs, cut costs, and adjust their product line.  A bankruptcy proceeding will force interested parties to the negotiating table and secure agreements bound by the Court. 

“Unfortunately, today’s auto bailout simply kicks the proverbial can down the road and supporting it does neither the auto industry nor the American taxpayer any good.  A Car Czar, consecrated by Speaker Pelosi and subject to shifting political winds, won’t ever do the difficult work needed to ensure the long-term viability of these U.S. auto manufacturers.  The Republican Leadership of the House offered today an alternative solution, which I strongly support.  This plan would force much needed reform of the auto industry by providing hard benchmarks for reorganization and creates incentives to encourage the private sector to provide short-term financing.  Unfortunately, Speaker Pelosi did not even allow a vote on this measure.

“The Democrat plan is nothing more than putting a band-aid on the cancer.  Nobody wants the domestic auto industry to succeed more than me, but the plan voted on today simply postpones the inevitable need for the companies to make the tough choices necessary for their long-term viability.”