Congress Passes Investment in U.S. Auto Manufacturing

by Donna Jablonski, Sep 29, 2008

The U.S. Senate gave final approval to a measure providing $25 billion in low-interest loans for manufacturers that build advanced technology vehicles and their components here in the United States. UAW President Ron Gettelfinger says the bill, passed Saturday, helps ensure vehicles of the future are produced by U.S. workers.

It’s a huge victory for our members, for U.S. manufacturing companies and for American consumers. This is a smart investment that will speed the introduction of more fuel-efficient vehicles and also create tens of thousands of good-paying U.S. manufacturing jobs.

Sens. Debbie Stabenow and Carl Levin and Rep. John Dingell, the three democrats from Michigan, drove the Advanced Technology Vehicle Manufacturing Incentive program through Congress, according to Gettelfinger. The legislation also received strong support from Senate Majority Leader Harry Reid, House Speaker Nancy Pelosi and Democratic presidential candidate Barack Obama.

In Michigan, the base of the U.S. domestic auto manufacturing industry, the unemployment rate has hit 8.9 percent, up from 4.7 percent when President George W. Bush took office.

The plan for the low-interest loans was passed as part of a 2007 energy bill, with bipartisan support, and was passed by the House on Wednesday. The measure was approved as part of the continuing resolution on the budget.

But the U.S. Department of Energy said it could take up to 18 months to implement the regulations enabling the loans to start flowing to automakers and parts suppliers, an unreasonable time frame, Gettelfinger says:

There is absolutely no reason to delay this vital program, and it shows why America needs a change in direction. This administration knows how to move fast when it wants to. It’s a disgrace that they can’t be bothered to take decisive action to help American workers and American companies.

A 2004 University of Michigan study found that supporting the manufacturing of more fuel-efficient vehicles in this country could create tens of thousands of jobs and pay for itself, UAW said.

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