U.S. Chamber Urges Congress to Quickly Assist Automakers

Calls Auto Industry Critical to the Economy, Jobs, National Security

WASHINGTON, D.C.—Congress and the administration should move quickly to provide financial support to struggling American automakers and their workers to prevent a dramatic worsening of the economic crisis, the loss of millions of jobs, and a threat to our national security, according to the U.S. Chamber.

"The financial crisis and the resulting steep drop in car sales are not only putting American automobile makers at risk, but also their network of suppliers, vendors, workers, and other businesses that provide goods and services to them," said U.S. Chamber President and CEO Thomas J. Donohue. "Congress and the administration must act immediately to help this critical American industry."

The U.S. Chamber called on the administration to apply the powers of the Emergency Economic Stabilization Act (EESA) to help restore liquidity and financing so that U.S. automakers are able to function, meet consumer demand, issue car loans, and develop new energy-saving technologies. The Chamber urged Congress to take additional measures during the lame duck session of Congress to provide liquidity to the industry.

A recent report from the Center for Automotive Research found that if the Big Three American automakers were to cut U.S. operations by 50%, 2.5 million jobs could be lost in 2009, including nearly 250,000 jobs lost at the automakers and nearly 800,000 at suppliers.

Gen. James L. Jones (Ret.), president and CEO of the U.S. Chamber's Institute for 21st Century Energy, said the financial health of auto industry suppliers is critical to national security. He said suppliers possess unique capabilities to design and manufacture essential defense components should the United States need them. "We can't allow this critical piece of America's manufacturing base to disappear," said Jones.

The automotive industry is one of the most important sectors of the U.S. economy, representing 4% of the U.S. gross domestic product and accounting for one in 10 American jobs, according to the U.S. Chamber.

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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