U.S. Chamber Urges Congress to Quickly Approve Loans for U.S. Carmakers

Must Put Politics Aside and Protect the Economy and Workers

WASHINGTON, D.C.—U.S. Chamber of Commerce President and CEO Thomas J. Donohue issued the following statement on aid to the U.S. auto industry:

"Congress must immediately authorize bridge loans to America's carmakers to prevent the collapse of the U.S. auto industry and the devastating impact it would have on the economy, American workers, and national security. Congress and the administration must also open the Federal Reserve's discount window to the automakers' financing arms so that they have adequate capital to make car loans to consumers. The survival and viability of the American auto industry are critical. The auto industry is one of the most important sectors of the U.S. economy, representing 4% of GDP and accounting for one in 10 American jobs.

"In supplying aid, Congress must fully protect taxpayer interests. However, it must not give control of three competing car companies to an oversight board of inexperienced members. In addition, Congress must not insist on measures—such as immediate changes to management—that will undercut the carmakers' ability to return to profitability as soon as possible. Changing horses in midstream is never a good idea, especially during a crisis.

"American carmakers are not asking for a handout. They are asking for a loan—to be paid back with interest. Such a loan will buy U.S. automakers the time they need to continue to implement aggressive restructuring programs, explore mergers, and develop the cars of the future while preserving millions of good-paying jobs. That sounds like a bargain to me."

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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