U.S. Senator David Vitter

(Washington, D.C.) – U.S. Sen. David Vitter today offered several alternatives to the auto bailout package being considered this week by Congress.
“Yesterday I announced two conclusions that I had reached on this bailout proposal: First, that I could not support this bailout in its present form and second, that I would use every possible procedural tool to delay or block a vote on its passage.  I continue to oppose this package today.
“I am not for doing nothing.  We cannot afford to simply pack up and go home because so much is at stake if we don’t take appropriate action.  I believe that if we are to do something, however, it should be the right thing.  There are two proposals being developed and discussed that I could support.
“One proposal by Senator Bob Corker would require that these companies reduce their outstanding debt by 2/3 and they bring their labor costs and work rules more in line with companies like Toyota, Nissan and Honda to make themselves more competitive.  This proposal would also require a change in UAW/VEBA payments, converting some to stock and providing employees with a real stake in the future of these companies.  Finally, it would require that all compensation beyond regular severance pay would end.
“I also support a formal bankruptcy process with help from the U.S. government. Automobile warranties would be backed up by the full faith and credit of the government with debtor financing available if necessary.  There are some who say that a declaration of bankruptcy would amount to disaster.  This is baseless fearmongering – there is another way.  We can demand fundamental, core restructuring and bring about real change in these companies, instead of simply throwing billions of dollars at them with no clear plan in hand.
“I urge my colleagues on both sides of the aisle to come together in a bipartisan manner and say yes to real restructuring.  If we are truly serious about helping these companies survive, we need to help ensure they can effectively compete in the marketplace,” said Vitter.