U.S. Senator Ken Salazar Member: Finance, Agriculture, Energy, Ethics and Aging Committees 2300 15^th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510
For Immediate Release Thursday, December 11, 2008		CONTACT:Michael Amodeo – 303-455-7600 Matt Lee-Ashley – 202-224-5852
Sen. Salazar's Statement on Auto Loan Vote WASHINGTON, DC – Today, United States Senator Ken Salazar voted to move forward toward passing the Auto Industry Financing and Restructuring Act, which would provide up to $14 billion in loans to U.S. automakers under the condition that they restructure to achieve long-term financial viability. The procedural motion, which required 60 votes to be agreed to, failed by a vote of 52 to 35. “This bill was not perfect. It is a bill nobody would ever wish to have to pass. These, however, are not normal times for middle class families and for the American economy. Economists from across the political spectrum agree that in the midst of an historic economic crisis, the collapse of the U.S. auto industry would extend the current recession, drive up unemployment, and diminish an already-weakened American industrial base. The livelihoods of millions of American families are at stake. “I believe that today the United States Senate needed to act - not for the executives whose failure to embrace advanced vehicle technologies have set their companies back, but for the millions of jobs that are on the line, for middle class families, and for America’s economic future. “Like all Americans, I hope our auto industry will survive long enough to make the changes that they so clearly need to make. I hope our economy will not, as a result of this vote, take on more water. “When the new Congress and the new Administration get to work in January, we must take swift action on an aggressive and strong economic recovery plan.” The Auto Industry Financing and Restructuring Act: Provides $14 billion in assistance to automakers who submitted long-term plans to Congress on Dec. 2, 2008, to come out of Energy Department retooling loan fund Limits executive compensation/golden parachutes for automakers receiving assistance Requires automakers receiving assistance to submit long-term restructuring plans to President’s designee by March 31, 2009 Prohibits automakers receiving assistance from making dividend payments to shareholders as long as financial assistance is outstanding Creates oversight position (a so-called “car czar”) appointed by the President with expertise in “economic stabilization, financial aid to commerce and industry, financial restructuring, energy efficiency and environmental protection” to carry out the purposes of the loan program, including facilitating the restructuring to achieve long-term financial viability of the domestic auto industry Requires President’s designee to facilitate negotiation of restructuring plans between parties with a direct financial stake in the auto industry and to establish tools to assess progress toward fulfilling those plans Requires GAO to conduct ongoing audits of the program Assigns additional oversight responsibilities to the Special Inspector General for the TARP program Requires regular reports to Congress Requires automakers to grant unfettered access to their financial books, company records and other data, and to seek permission for any business transaction worth $25 million or more Requires automakers to provide warrants to purchase non-voting shares of stock in exchange for assistance Prohibits automakers receiving assistance from owning or leasing any private aircraft ###