WASHINGTON, DC - December 11, 2008 - Congresswoman Niki Tsongas released the following statement after the House voted to pass the Auto Industry Financing and Restructuring Act late last night, legislation which would provide a $15 billion emergency loan to aid the U.S. auto industry. 

"After much deliberation and careful consideration, I voted in support of legislation which will provide a $15 billion loan to the U.S. auto industry.   Like many of those I represent, I am extremely critical of our domestic auto manufacturers who for years resisted calls to build cars and trucks that were more fuel efficient and competitive with their foreign counterparts.  While the recent economic downturn has no doubt had an extremely adverse affect on the automakers, poor management and leadership have played a most significant role in their decline.

"However, given the extremely fragile state of our economy, the loss of more than 500,000 jobs in November alone, the fact that one in ten jobs in the U.S. is linked in some way to the auto industry, including more than 35,000 in our state, it became clear to me that the collapse of our American auto industry had the potential to compound an already challenging economic situation in our country. Furthermore, the loss of the touchstone of our domestic industrial base poses national security implications as well.

"I was able to support the loan legislation passed today because it contains strong independent oversight and protections for the taxpayer.  The federal assistance that we are extending is contingent upon the car companies' ability to develop and implement long-term restructuring plans that will return the industry not only to viability, but also to a forward looking innovative agenda.

"The Government Accountability Office and the Special Inspector General overseeing the Troubled Asset Relief Program (TARP) financial rescue funds will both have oversight powers.  And, auto executives, employees, labor unions, dealers, suppliers, creditors, and shareholders will all be required to participate in the restructuring efforts.

"The legislation also requires no ‘golden parachutes,’ no bonuses for the 25 most highly paid employees at each company, and that no corporate aircrafts be used by these companies.

"With these safeguards in place, I am hopeful that the auto manufacturers can move swiftly to make the necessary changes to modernize their products and return their industry to viability.  It would truly be a sad day if America, the birthplace of the car, was no longer able to produce the automobiles which were so instrumental in shaping our country, our economy, and our middle class."

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