Washington, D.C. – Idaho Congressman Walt Minnick today praised President Barack Obama for his frank analysis of the American auto industry, but urged the president to move quickly toward prepackaged bankruptcies for the troubled companies.
“Forcing these companies to restructure is the plan I have advocated since last year,” Minnick said. “I was pleased to hear the President finally demand accountability from the executives who run American auto companies. Months ago I called for those companies to shed top management and go through bankruptcies so that the companies could reinvent themselves for the future. That’s an effective, non-partisan, business approach to the woes of the auto industry, and it’s an approach we need moving forward.”
However, Minnick called for the administration to withhold any further funding and to force the companies to write restructuring plans for approval by a bankruptcy judge.
“Propping these companies up for another month or two is just prolonging the inevitable at taxpayer expense,” Minnick said. “As I said back in February, the leaders of these companies have proven that they are not willing to be accountable. Forcing these companies to restructure is a good first step, but they should do it through a bankruptcy court and they should do it without further assistance from the taxpayers.”
Click here for more of Minnick’s past statements on bailouts for the auto industry.