Recent auto industry announcements:
5/19/11 – Chrysler announced it had repaid government loans of $7.6 billion.
5/19/11 – General Motors (GM) announced they would spend $2 billion to create 4,200 jobs in 18 plants in 8 states.
These announcements on top of some similar accomplishments in the past two years show that the auto industry has come back, will create and contribute to jobs, and be a key part of the economy all across the country. This is a big deal! The auto industry touches 3 million jobs.
How this happened:
+In 2008, with the auto industry facing financial disaster, the Republicans in Congress blocked a proposal for loans to the auto companies.
+Outgoing President Bush and President-elect Obama worked out a deal. Bush would make the loans out of existing “bailout” funds, and Obama would implement a rescue program.
+In 2009, the Obama administration entered into initiatives with Chryler and GM. Chryler was reorganized and GM was reinvented into a new company. Ford was working its own way out with low interest loans it had obtained.
+The government was very directly involved with Chrysler and GM – right down to restructuring debts, making executive decisions, reorganizing, and requiring accountability.
+The United Auto Workers (UAW) was very involved, and made contributions and concessions. It worked – the government, the companies, and the union worked together, and brought back the auto industry.
The Republicans tried to block this effort in Congress. Some quotes:
Senator Richard Shelby, Alabama, 11/16/08 –
“Companies fail every day and others take their place. I think this is a road we should not go down.”
Senator John Kyle, Arizona, 11/16/08 –
“Just giving them $25 billion doesn’t change anything. It just puts off for six months or so the day of reckoning.”
Senator Mitch McConnell, Kentucky, 12/1108 –
“Even if we grant that these companies would fail without taxpayer help we would still have to ask ourselves whether the proposal before us achieves the goal that everyone claims to embrace – namely, the long-term viability of ailing car companies – and in my view, it does not.”
These Republican leaders were wrong! The auto companies, one of America’s core industries, have been saved.
Here’s a link to what Vice President Joe Biden said about it.
Let’s work hard to elect good Democrats! They know what’s right, and what will work for our country.