Print this page

Graham Statement on Automotive Bailout

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today made this statement on President Bush’s plan to offer $17.4 billion to General Motors and Chrysler.

Graham said:

“I’m disappointed with President Bush’s decision in many respects. 

“I do not believe it’s appropriate to use the TARP (Troubled Asset Recovery Program) funds to bail out the automotive companies.  These funds were supposed to be used to stabilize financial institutions.  The TARP legislation would certainly not have passed it we had known it was going to be used for this purpose. 

“The plan announced by the President today will not lead to the necessary reforms which will make these companies profitable.  The only viable solution is for them to enter Chapter 11 reorganization. 

“There the companies would be able to renegotiate their labor and health costs to make them competitive in the global marketplace.  It would also allow the reorganization to be accomplished without political considerations.  Presidential or congressional restructuring will end up being a political exercise more so than a business exercise to make these companies profitable. 

“If we continue down this road, I expect this will be the first of many government payments to the Big 3 automotive companies.”

####

You will need to have Real One Player installed on your computer to be able to listen or watch the clips above. Real One Player is free software that lets you play audio and video files. Download Real One Player