Auto union chief pleads for government bailout help
WASHINGTON -- The head of the United Auto Workers made a public plea Sunday for government help for U.S. carmakers as the Detroit Big Three put the final touches on company stabilization plans they must submit to Congress.
"We cannot afford to see these companies fail," said Ron Gettelfinger, the UAW chief, calling on Congress to approve the aid during a special session the week of Dec. 8.
Gettelfinger said a $25 billion rescue plan for the carmakers is "not a bailout; this is a loan — a bridge loan — that will get us through until we can take a longer-term look at exactly what needs to be done in the industry."
If lawmakers like what they see, Congress may reconvene the following week to consider the auto bailout.
Members of Congress remain deeply divided on the aid, with many in both parties wary of supporting another costly government rescue on the heels of the $700 billion Wall Street bailout.
Sen. Lindsey Graham, R-S.C., said he would not back a bailout for the U.S. auto industry.
"I don't believe it is a good idea to take $25 billion and give it to the three major car companies, which I think have a business plan that's doomed to fail," he said. Like many Republicans and some Democrats, Graham said it would be better to allow one or more of the struggling companies to go under and restructure in bankruptcy.
Sen. Claire McCaskill, D-Mo., said she's willing to consider a bailout, but not before Congress gets a clear accounting of the companies' financial situation.
"We need to behave like a bank," McCaskill said. "And we need to make sure that we get all of those internal financials and that we feel comfortable that this is a good investment for the American taxpayer."
The Senate Banking, Housing and Urban Affairs Committee is scheduled to meet Wednesday on the automakers' plans. The House Financial Services Committee has set a Friday session.
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