Statement from Sen. Levin and Rep. Levin on Auto Bridge Loans

WASHINGTON – Sen. Carl Levin (D-Mich.) and Rep. Sander Levin (D-MI12) issued the following statement today regarding the auto industry bridge loans announced by President Bush this morning:

The action to provide emergency loans to the U.S. auto industry announced this morning by the President will provide a bridge to the future for the industry and for millions of working families in communities across America.

It gives the industry breathing room to cope with the global financial crisis and take the restructuring steps essential to return to economic health. It also avoids an unnecessary blow to our reeling economy and provides a shot in the arm to our nation’s manufacturing sector.

The current crisis facing our domestic auto industry was brought on by factors beyond its control. Automakers around the world are facing similar challenges, and from Asia to Europe to Latin America, foreign governments have stepped up to keep their automakers from failing.

Today’s action appropriately rejects the notion of bankruptcy. In addition to the specific actions listed under the restructuring plan, the White House documents list additional subjects which the companies are to use their best efforts to achieve. The President was wise to set those restructuring targets as non-binding goals which are subject to negotiations and which the negotiators can deviate from.

The daunting challenge of restructuring the U.S. auto industry to achieve a plan for financial viability will require sacrifices by all of the stakeholders in this process in the next three months. Now it is up to President-elect Obama to carry forward the plans for the support and recovery of our domestic auto industry.