Texas Senator Kay Bailey Hutchison regarding the Auto bailout!!

[Hoss]

Folks....what did she say?



Dec. 2, 2008


Dear Mr. Hoss:

Thank you for contacting me regarding the financial state of the U.S. automobile industry. I welcome your thoughts and comments on this issue.

Our economy is facing dramatic challenges. Financial conditions are rapidly deteriorating, creating volatility and uncertainty for businesses, small and large, across the country.

As Texans, we have learned to take responsibility for our actions and being asked to pay for the mistakes of others is something many, including myself, find deeply troubling. While I am a firm believer of free market principles, I also believe that our economy is facing new challenges that if unaddressed, may produce serious unwarranted costs.

On September 30, 2008, the President signed into law H.R. 2638, the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009. This legislation included, among many items, funding to support a $25 billion loan program for U.S. automakers. The loans, which will be repaid with interest, are intended for long-term business restructuring to promote innovative technologies and new fuel efficient products. The Department of Energy, which is administering the loan program, has indicated that the loans are scheduled to be released in 12 to 18 months.

Several weeks after H.R. 2638 was signed into law, executives of the three major U.S. automakers requested Congress provide an additional $25 billion to $50 billion from the Treasury’s Troubled Asset Relief Program (TARP) to support their short-term funding needs. The CEOs of the largest U.S. automakers testified before Congress that their companies are facing a liquidity crisis, and without an immediate injection of capital, their businesses may fail, creating massive job losses across the country.

The domestic auto industry has failed to meet foreign competition, and I do not think taxpayers should have to provide additional money from the TARP to the auto industry. Instead, I have proposed restructuring and expediting the $25 billion Department of Energy loan program to help the American auto industry weather the financial storm and retain their employees across the country. Requiring these prior funds, which are required to be paid back with interest, to be used on long-term expenditures is not the best use of federal resources when these companies are struggling to stay operational. Rather, these funds should be utilized for short-term needs first. I also believe that any government plan to aid the auto industry must include significant taxpayer protections, including restrictions on executive compensation, concessions from the unions, and assurances that each recipient of federal loans is financially viable.

As Congress returns to debate this issue, you may be certain I will keep your views in mind.

I appreciate hearing from you. I hope you will not hesitate to contact me on any issue of concern to you.

Sincerely,
Kay Bailey Hutchison
United States Senator

284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)
http://hutchison.senate.gov

PLEASE DO NOT REPLY to this message as it is not a valid e-mail address. Due to the tremendous volume of mail Senator Hutchison receives, she requests that all email messages be sent through the contact form found on her website at http://hutchison.senate.gov/contact.cfm .

If you would like more information about issues pending before the Senate, please visit the Senator's website at http://hutchison.senate.gov . You will find articles, floor statements, and press releases, along with her weekly column and monthly television show on current events. You can also sign up to receive Senator Hutchison's weekly e-newsletter.

Thank you.

[Rodrunner]

Gotta agree with the lady.

2SS/RS Black/Black w-Cyber Gray stripes/Auto - ordered 10/18/08 - Polished Aluminums added 12/1/08

[UCF w00t]

I would agree but the fed just cut another check to Citi for $20bil on top of the $25bil they already got as well as act as a guarantor for $300bil of bad debt. Where is her objection to this?

[Eighty-Six Z]

Looks like she wants to give them a short term loan that will be paid back with intrest. And she doesn't want it to become an extra tax burden on her constiuents (spelling?). I think she agrees the industry needs help, but she wants the government to have a return on their investment (i.e. a better managed industry).

[playhard67]

she sent the same letter to a6pk2go see post #23
http://www.camaro5.com/forums/showthread.php?t=10192

[soonerkid31]

yep got that too

[Legend]

I got the exact same one today as well...

[sykb47l]

Originally Posted by I am Legend

I got the exact same one today as well...

+1

[Vash]

Aye screw the banks and insurance.

If the election was still on you could bet they would would be kissing up to the unions and promising the money. Now that it's over where is they money?

What the unions voted for DNC? Where is the bailout? Trying not to get political but GM and Ford can't fail. Crysler should be forced to merge with GM and GM should cut everything but Chevrolet (one brand from now on not repackaging).

[FirstLSK]

I actually agree with her general approach.

Help them out but prevent AIG-like fiasco, plus protect the tax payer investment in the loan.

What they are doing with the banks is a different story. Where is the oversight and tax payer protection. American Express is now a "bank", just so it could tap into the funds as well.

[SS One]

At least you guys received a response from your Senator! I sent letters and e-mails to both of my US Senators and to Speaker Nancy Pelosi weeks ago and never received any kind of response.

[kdbolt70]

I got this a couple days ago from Mi senator Debbie Stabenow:

Thank you . . .



. . for contacting me about providing financial support to the American automotive industry. I agree with you, and I'm fighting in the Senate to protect our manufacturers and Michigan workers.



I have led our efforts in the Senate to help the Big Three. In September, the Senate passed a retooling program to provide auto manufacturers with $25 billion in loans to modernize aging plants. This program, which was signed into law, will help automakers begin building the next generation of fuel-efficient vehicles.



Our automakers have been working hard to restructure their businesses to meet the manufacturing needs of the 21st Century. Their employees have sacrificed with job losses and cuts to pay and benefits. We are seeing the generation that created the middle class give up retirement benefits for the survival of the companies they worked for so long to support. Unfortunately, this global economic crisis comes at the worst possible moment for the Big Three, which is why the federal government needs to step in and help.



I am fighting in Congress to give the automakers access to an additional $25 billion in loans out of the $700 billion financial rescue package passed earlier this year. This bridge loan is only a small fraction of the amount we're giving to Wall Street, but investing it in the automotive industry would protect our manufacturing economy and millions of American jobs.



The American automotive industry helped create the middle class. We cannot allow these companies to fail. One out of every ten jobs in our country is auto-related. The loss of the Big Three would cost at least 2.5 million jobs, devastating not only the people of Michigan, but the entire country. With the loss of these jobs, even more families will struggle to pay the mortgages on their homes or to make everyday purchases, expanding the current economic crisis to levels we can hardly imagine.



Know that I will continue to do everything I can to support the domestic automakers and American workers through this economic crisis. We cannot allow the country to be dependent on foreign technology when the creativity and innovation is right here in the United States.
Thank you again for contacting me about this urgent matter. Please continue to keep me informed about issues of concern to you and your family.



Sincerely,

Debbie Stabenow

United States Senator

[TomServo]

The question remains, even if the BIG 3 get the loans and start down this path of redemption. Will the American public buy what they produce??

I ask this as I witnessed two of my co-workers decide it was time to replace their older cars and both of them bought "imports". One bought a V6 Camry and the other a Honda Civic Si.

Seems to me that except for some die hard enthusiasts (Corvette, Camaro, and Mustang buyers) the Big 3 just can't break through this barrier to garner the bread and butter buyers necessary to remain in business.

BTW when I asked my co-workers why the Toyota/Honda vs say a Malibu LT or Cobalt SS they both said "are you kidding".

How do US auto makers overcome this basis???? I just don't feel the love from the buying public.

[SilverTurtle]

I maintain that we need to institute some protectionism policies in the auto industry... taxing the import companies and making it almost impossible for them to sell cars here... these are the practices the Japanese government imposes on the US manufacturers when they try to sell cars in Japan... it makes it almost impossible to sell cars made outside of the country inside the shores of Japan... and all but completely blocks US auto manufacturers from buying any kind of Japanese plants or land to build cars there... its time to we took this game seriously and give the American public an idea of what they are facing by buying cars made by former Axis power countries.

and as for KBH's generic response to everyone's letters: that wench doesn't know anything about our economy... that letter was something one of her aides typed up to respond to the huge number of emails, letters and calls that her office is getting in support of the auto manufacturers... if she was really in the know about our economy, she'd be on a commercial talking about how bad of an idea it is to be throwing money to the banks... Heaven knows she's not afraid to get on TV and touting when she's doing something right.