WASHINGTON, DC — Senator Hillary Rodham Clinton decried President Bush’s opposition to an assistance package for the automotive industry and urged the President to reconsider his position. In a letter to the President, Senator Clinton underscored the dire consequences of a collapse of the auto industry for workers and businesses across the nation already struggling in a weakened economy. Senator Clinton also outlined needed conditions for any relief effort, including repayment terms, provisions for the government to gain equity in auto companies in exchange for assistance, and a commitment from automakers to invest in new technologies and to support their current U.S. workforce.

“The President’s opposition to assistance for the auto industry threatens dangerous repercussions for a critical part of our manufacturing sector and for an economy already in turmoil. We cannot simply stand by with millions of American jobs at stake. We need to act quickly and effectively to put American automakers on a path toward stability and to protect the middle class families that rely on the auto industry,” said Senator Clinton.

Senator Clinton also sent a letter to Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi commending their commitments to assist the auto industry and offering her proposals for any potential relief package.

The text of Senator Clinton’s letter to President Bush follows and is available in PDF form at http://clinton.senate.gov/documents/news/11_13_08_bush.pdf. Senator Clinton’s letter to Senator Reid and Speaker Pelosi is available here: http://clinton.senate.gov/documents/news/11_13_08_pelosi.pdf.

The President of the United States
The White House
Washington, DC 20001

Dear President Bush:

I was deeply disappointed to learn of your opposition to assistance for our automobile sector.

The automobile sector has been devastated by the recent economic meltdown. Frozen consumer and commercial credit and plummeting sales have pushed U.S. automakers to the edge of collapse. General Motors last week posted a $2.5 billion quarterly loss and has predicted that it could run out of cash by the end of the year, with the other major producers and countless suppliers and smaller subcontractors in similar straits. According to one estimate, almost three million jobs are tied to the Big Three automakers. The collapse of the domestic auto industry would have a ripple effect that would be immediately felt by New York’s nearly 37,000 auto manufacturing-related workers and the many suppliers and dealers throughout the state and the entire nation. Moreover, a collapse would have a destructive impact on an economy that has already been seriously weakened by the financial crisis.

To prevent this from happening, we need a strong and timely relief package that addresses the many problems plaguing this critical industry. The measure should focus not only on the Big Three but also extend to auto suppliers and the rest of the auto industry. Of course, the package should not be a blank check. Loans must be repaid, and the program must allow the government to take an equity stake in these companies in exchange for the loans or other capital injections. The program should also encourage investment in new technologies in exchange for any assistance. I firmly believe that an ongoing commitment by the auto makers to support its current U.S. workforce and invest in new jobs in the U.S. should be a critical component of this package. Finally, we have an opportunity to craft a smart and targeted package that will provide vital assistance to an essential American industry, returning these companies to a path of financial well-being.

Simply allowing these companies to slide into bankruptcy at such a crucial time, with no consideration for the consequences of inaction or of the impact on the millions of jobs at stake is not a satisfactory answer. For over 50 years automobile production has been the backbone of our manufacturing sector, which itself has been the backbone of our middle class. I ask you to reconsider your position, and I look forward to providing my assistance in any way I can in the days to come.

Sincerely yours,

Senator Hillary Rodham Clinton

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