WASHINGTON, DC – Senator Hillary Rodham Clinton made the following statement after President Bush announced $17.4 billion in emergency loans to the struggling U.S. automakers.

“The American auto industry is the backbone of our nation's manufacturing base and directly and indirectly employs millions of Americans, including more than 230,000 New Yorkers. As we grapple with a deepening recession, continuing turmoil in the financial markets, and a potentially devastating new wave of home foreclosures, a bankruptcy by any of our U.S. automakers would further destabilize our economy. The emergency assistance announced today is necessary to prevent an immediate economic catastrophe and will help pave the way for the stabilization of our automakers.

“While this is an overwhelmingly positive development that will be welcome news to the millions of families whose livelihoods depend on the auto industry, I am concerned about the potential impact that several of the conditions may have on American auto workers who have already agreed to significant concessions in an effort to reduce costs and stabilize their companies. In addition to maintaining accountability for the automakers and protecting the taxpayers’ investment, we must ensure that these funds are used toward building a stronger U.S. auto industry while supporting the U.S. auto worker. These funds should not simply be used to close U.S. facilities while opening new ones overseas, nor should they be used to put unreasonable burdens on our workers. This is an opportunity for our U.S. automakers to put in place sensible, long-term plans to return to viability, ensure the protection of workers, and move toward production of greener, cleaner vehicles. It is critical that Congress, the Administration, industry and labor leaders all work together to advance policies that will ensure that these goals can be met.”

According to a new report by New York State, 230,000 New Yorkers work for auto-related businesses. Western New York alone is home to more than 29 automotive and automotive parts manufacturing facilities, including General Motors, Ford, American Axle and Delphi, which employ more than 16,000 people. Almost 30 percent of the total manufacturing payroll in the region comes from automotive parts makers, which account for almost one-quarter of the region’s manufacturing jobs. The effects of the industry's struggles are already being felt. American Axle closed a plant in Buffalo is June and plans to close a second in Tonawanda next year. This month Arcelor-Mittal Steel announced it will be closing its 260 person plant in Lackawanna.

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