For Immediate Release
December 2, 2008 |
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FOR MORE INFORMATION:
Cullen Schwarz
Office: 202.225.4961
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Auto Plans Strong and Forward Looking |
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Recession, sales figures and global credit crunch underscore
need to support domestic auto industry and millions of jobs |
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(Washington D.C.)- Rep. Sander Levin (D-MI) issued the following statement regarding the business plans submitted by Ford, G.M. and Chrysler in their response to the path outlined by Speaker Nancy Pelosi and Senate Majority Leader Harry Reid to support the request for a federal bridge loan to weather the current recession and increase global competitiveness in the years ahead.
“The Big 3 domestic automakers are presenting strong plans detailing their short-term needs to weather this global financial crisis. Each has set forth long-term plans for restructuring including further cost-cutting and utilization and development of vital advanced technologies.
“General Motors’ plan underscores the severity of the damage done by the financial crisis to U.S. auto sales and to its liquidity position. It has presented a difficult, but realistic estimate of its short-term financing needs to weather this economic downturn and undertake an aggressive restructuring of a company that remains the backbone of American manufacturing, producing fully 1 in 5 cars sold in the United States.
“General Motors has committed itself to a sweeping restructuring of its business that puts all issues on the table, including brand consolidation, reductions in dealer locations and other cost reductions. Importantly, they detail an accelerated investment in the fuel efficient and advanced technology vehicles of the future, including launching the groundbreaking electric Chevrolet Volt in 2010.
“Ford has demonstrated its commitment to a forward-looking product mix that will meet a permanent shift in consumer demand for smaller, more fuel-efficient vehicles, improve fuel economy across all vehicle platforms and build on its leadership in hybrid technology by doubling the volume of Hybrids by 2009.
“Chrysler has laid out its short-term liquidity challenges in great detail and clearly articulated why bankruptcy is simply not a workable option for an automaker. Chrysler has indicated its restructuring needs in the mid-term and its commitment to develop new advanced technology vehicles including offerings such as the ENVI electric drive vehicles.
“Each CEO is leading by example by taking a $1 salary, selling corporate jets and committing to all other executive compensation and bonus restrictions, as well as offering equity stakes as required by Congress. The Big 3 and their management have gone above and beyond any requirements made of Wall Street to date.
“The combination of a domestic recession and a global financial credit crisis is crippling our manufacturing base. We must act to preserve the millions of jobs at stake, to maintain the U.S. advantage in advanced technologies and to protect the synergies between the auto industry and national security. Congress will now carry out its responsibilities through hearings and other consultations. It is also vital that the Administration be actively involved.”
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To Contact Congressman Levin: -
Email Congressman Levin In Michigan: 27085 Gratiot Ave, Roseville, MI 48066 | (586) 498-7122 | (248) 968-2025
In Washington: 1236 Longworth House Office Building, Washington, DC 20515 | (202) 225-4961
