Washington, DC – December 10, 2008 – U.S. Representative Mike Doyle released the following statement today after the House of Representatives voted to approve H.R. 7321, the Auto Industry Financing and Restructuring Act:
“I believe that the collapse of our domestic auto industry would have a tremendous and far-reaching impact on our entire country. The effect wouldn’t just be confined to the Midwest. Here in Pennsylvania, for example, over 100,000 jobs depend on the auto industry.
“I think the federal government needs to do everything humanly possible to get our domestic auto industry back on its feet. If we don’t, the Big Three could go under and pull our nation’s economy down with them. That’s why I voted today to provide bridge loans to our domestic auto makers.
“This package provides our domestic carmakers with the help they need to get through the coming months – but only if they undertake the steps necessary to restore their businesses to economy viability. If they haven’t made significant progress by the end of March, the federal government can call those loans.
“This restructuring package contains a number of provisions to protect taxpayers as well. It conditions the loan on each recipient eliminating executive bonuses, “golden parachutes,” and shareholder dividends for the life of the loan. It also requires the loan recipients to put the government ahead of all other lenders for repayment, and it gives the federal government the right to buy the borrowers’ stock so that the taxpayers will profit if the companies succeed in restructuring.”
“I hope that this restructuring package will allow the Big Three to retool their operations so that they can be economically viable in the near future.”
This legislation was approved by the House by a vote of 237 to 170. It must now be considered by the Senate.
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