Chrysler Repays Bridge Loan, Adds Jobs
Today, six years ahead of schedule, Chrysler Corp. repaid the last of its $8.5 billion in loans the Obama administration made to the troubled carmaker in April 2009 to help keep Chrysler afloat and save the jobs of tens of thousands of Chrysler workers and workers in the supply chain.
In less than two years, the financial aid from the government’s Troubled Asset Relief Program (TARP) helped Chrysler emerge from bankruptcy and keep workers on the line. The loan to Chrysler drew heavy criticism at the time—especially from those who said the government had no business investing in jobs. Said President Obama in a statement today:
Supporting the American auto industry required making some tough decisions, but I was not willing to walk away from the workers at Chrysler and the communities that rely on this iconic American company. I said if Chrysler and all its stakeholders were willing to take the difficult steps necessary to become more competitive, America would stand by them, and we did.
In a conference call this morning with former Democratic governors, Jennifer Granholm (Mich.) and Ted Strickland (Ohio), UAW President Bob King said the Obama administration’s willingness to invest in Chrysler and GM with TARP funds shows a major difference between Democratic and Republican strategies on manufacturing.
We’re bringing many manufacturing jobs into this country because Democrats under the president’s leadership understand the importance of manufacturing to the U.S. The Republican Party is doing nothing for the manufacturing base.
Read more at Talking Points Memo.
Tell the President: GM Can’t Use Taxpayer Money to Ship U.S. Jobs Overseas
General Motors Corp.—which has received some $15.6 billion in federal bailout funds and is asking for another $11.6 billion—plans to use some of that taxpayer money to close 16 U.S. manufacturing plants and increase the number of vehicles made in Mexico, China, Korea and Japan for sale in the United States.
The UAW is asking its members and supporters to send a message to President Obama and to the auto task force that will have to approve GM’s restructuring plan, asking both to
stand up for the interests of American workers and retirees.
GM has until the end of May to submit its restructuring plans and is in negotiations with the UAW, the auto task force, bond holders, lenders and others with a stake in the company’s future.
AFL-CIO Ad: ‘Auto Loans About All of Us’
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The economy is in a free fall and failure to help the nation’s automakers could be devastating, economists say. Nearly 2 million jobs have been lost this year—more than half a million last month alone—and there is a possibility that another 3.3 million jobs could be gone if Congress does not pass an emergency bridge loan for the Big Three automakers. Some 10 million U.S. workers were looking for a job in October. That’s why union members are pushing for Congress to quickly approve the auto industry loans.
In full-page ads today in The Hill, Roll Call and Politico newspapers, which reach decision makers in the nation’s capital, the AFL-CIO says the auto industry crisis does not just affect autoworkers, its impact stretches across the economy in a big way.
The House may act as early as today to pass a $15 billion bridge loan package, but a small minority of Republican senators are threatening to filibuster against the bill and stop it from being approved in the upper chamber. If lawmakers do not act this week, UAW President Ron Gettelfinger said, one or more automakers will be forced to liquidate operations.
UAW Strongly Backs Auto Loan Package
With Congress poised to consider a $15 billion bipartisan emergency bridge loan for the Big Three automakers, the UAW is strongly urging lawmakers to pass the legislation quickly to save as many as 3.3 million jobs across the economy.
While the U.S. House may act as early as today, a small minority of Republican senators are threatening to filibuster against the bill and stop it from being approved. If lawmakers do not act this week, UAW President Ron Gettelfinger said, one or more automakers will be forced to liquidate operations.
Please call your representative today! Urge her or him to vote for the bipartisan legislation to provide emergency bridge loans to the domestic auto companies. Tell your representative this legislation is essential to prevent the collapse of the companies and the devastating consequences that would follow for millions of workers and retirees, and for the entire economy of our nation.
UAW Launches Ad to Showcase Need for Bridge Loan to Auto Industry
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Congress and President Bush quickly signed off on a $700 billion, nearly no-strings-attached bailout to Wall Street and the nation’s financial industry. Now, says the UAW in a new TV commercial, it’s time to focus on Main Street. UAW President Ron Gettelfinger puts it this way:
Main Street deserves help just as much as the bankers on Wall Street. It is time for Congress to do its job to save millions of American jobs and prevent our nation from falling deeper in recession.
The ad, which began airing this week in the Washington, D.C., area, features UAW members urging Congress to approve a bridge loan to allow U.S. automakers to keep their assembly lines rolling. They tell viewers:
We don’t work on Wall Street…or for big insurance companies. We build quality cars and trucks. But we’ve been hit by the same financial crisis.
If we go out of business…so will thousands of other businesses….If we lose our jobs…so will millions of others….
If Auto Industry Goes Bankrupt, Millions of U.S. Jobs Will Be Lost
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Here’s one big reason analysts say Congress should approve emergency loan legislation to ensure that Detroit’s Big Three automakers remain in business. If one or more of the automakers goes bankrupt, it could mean a devastating loss of between 3 million and 5 million jobs in the first year alone.
The impact of such a massive job loss would create a domino effect throughout the economy. Some estimates indicate that nearly one in every 10 American jobs depend in some way on the auto industry. A total of 2 million employees, retirees and dependents rely on automakers for health care benefits. The Center for Automotive Research recently reported that if one of the Big Three shut down in 2009, the first year of a bankruptcy would result in a loss of $125 billion in personal income, $17 billion in Social Security receipts and $20 billion in personal income taxes.
Auto Crisis Threatens Entire Economy; Union Ready to Do Its Part—Again
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If Congress does not soon approve emergency loan legislation to keep Detroit’s Big Three automakers operating as they ride out the nation’s financial crisis, job losses will ripple not just through the auto industry but through the entire economy, warned UAW President Ron Gettelfinger.
At a news conference today following an emergency meeting with UAW local and regional leaders, Gettelfinger said the union is willing to “take the extra step” to aid the industry. Union leaders, he said, have agreed to delay automakers’ payments to a union-administered health care fund and to modify the union’s job banks program that provides laid-off workers with a portion of their wages and benefits.
But he reiterated that UAW members already have agreed to wage and benefit concessions that have lowered labor costs at the Big Three.
