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PENCE OPPOSES AUTO BAILOUT; PROPOSES ALTERNATIVE REORGANIZATION PLAN
Plan Offers Incentive Without Burdening Taxpayers

Congressman Pence, newly elected Republican Conference Chairman Related Documents The American Automotive Reorganization and Recovery Plan (PDF)

Washington, Dec 10, 2008 - U.S. Congressman Mike Pence, incoming Chairman of the House Republican Conference, issued the following statement today in support of the House Republican alternative to the automotive bailout plan offered by the White House and Congressional Democrats.

“The American automotive industry is facing a serious financial crisis and millions of jobs are on the line. Inaction by Congress is not an option.

“However, the bailout proposed by the White House and Congressional Democrats is fundamentally flawed. It exposes the American taxpayer to more debt, fails to reorganize the domestic auto manufacturers to ensure long-term success and does not fix the immediate credit crisis. Instead, the Democrat bill will prevent necessary changes and force us back into this same situation where taxpayers will be asked to bail out the industry again.

“The Democrat bailout also seeks to create a ‘car czar’ with the responsibility of making the car companies profitable again. Trusting a Washington bureaucrat, who probably never tightened a lugnut, with fixing what ails the American automotive industry is not the answer.

“Today House Republicans are proposing the American Automotive Reorganization and Recovery Plan to lock in the restructuring promised over the last few weeks with firm benchmarks and a tight timeline.

“And in place of a short-term government bailout, our alternative taps private investment to finance the Detroit recovery.

“That is a solution that will protect our domestic auto industry and the American taxpayer.”