WORLD> America
|
WORLD> America
|
|
Showdown looming in US Congress of automaker rescue
(Agencies)
Updated: 2008-11-17 09:37 Obama won most of the manufacturing states in the presidential race, including Ohio, a perennial battleground, and Indiana, which had not voted for a Democrat for president since 1964. Obama easily won Michigan after Republican John McCain publicly pulled out weeks before Election Day.
Former GOP House Speaker Newt Gingrich said young voters, who overwhelmingly supported Obama over Republican John McCain in the presidential election, could get turned off by expensive corporate bailouts that they will eventually have to pay for. If "those 20-year-olds and 30-year-olds start to figure out they're going to pay the taxes, they're not getting the billions, I think you might find a lot of dissatisfaction by next summer," Gingrich said. Sen. Carl Levin, D-Mich., said automakers are working to adapt to a changing consumer market, but they need immediate help to survive the current economic crisis. "This is a national problem," Levin said. "The auto industry touches millions and millions of lives." "It's not the General Motors we grew up with. It's a General Motors that is headed down this road to oblivion," said Shelby. "Should we intervene to slow it down, knowing it's going to happen? I say no, not for the American taxpayer." United Auto Workers President Ron Gettelfinger would not flat-out reject further concessions by members on top of the two-tiered wage system and other concessions the union gave the automakers last year, but he bristled at calls for further sacrifices by his members. "Let's go to AIG, Bear Stearns, active and retired workers: Did anybody go in and ask them to give back wages and benefit levels?" Gettelfinger said on WDIV-TV in Detroit. "What about the bond traders? Did anybody ask them? What about the cleaners in the building? Why would the UAW be any different?" "We made an agreement, and we made major concessions," he said. "So how can you blame the autoworkers?" Obama said he believes aid is needed but that it should be provided as part of a long-term plan for a "sustainable US auto industry", not simply as a blank check. "For the auto industry to completely collapse would be a disaster in this kind of environment," Obama said in a "60 Minutes" interview airing Sunday night on CBS. "So my hope is that over the course of the next week, between the White House and Congress, the discussions are shaped around providing assistance but making sure that that assistance is conditioned on labor, management, suppliers, lenders, all of the stakeholders coming together with a plan, what does a sustainable US auto industry look like?" Lawmakers opposed to the bailout say Chapter 11 might be a better option than government loans and they cite the experience of airlines that have gone through the process of reorganization. But GM CEO Rick Wagoner, also appearing on Detroit's WDIV, said: "This idea that you just go into Chapter 11 and hang around for three months ... this is a fantasy. This is not going to work. Most important to what is going to happen is most people will stop buying the cars of a bankrupt company." Shelby and Levin were interviewed on NBC's "Meet the Press" and Shelby also appeared with Frank on CBS' "Face the Nation." Kyl spoke on "Fox News Sunday" and Gutierrez was on "Late Edition" on CNN. |
