As you have probably heard, House Speaker Nancy Pelosi has committed to pushing aid for the US auto industry in a special session of Congress scheduled for next week. The Senate is also scheduled to meet next week and Sen. Carl Levin of Michigan is drafting an amendment to the financial industry bailout that would authorize loans to help automakers survive the economic downturn. The timing of these sessions is important given the current state of the industry?s cash reserves.
Swift action on these measures is important to our economy in general and to the auto industry and the Plan in particular. Therefore, we are asking that you write letters, send e-mails or call your Senators and Representatives to urge for immediate passage of the amendments authorizing assistance. Below you will see sample language you can use in a letter or e-mail or as talking points in a phone call to your current legislators. This is a critical time for all of us and we ask that you take the time to push for this much needed legislation. We also ask that you forward the language below to your friends, neighbors and relatives and ask that they assist in this effort.
You can get the phone number, address or access the e-mail address of your Representative by going to www.house.gov . To reach your Senator, go to www.senate.gov
Letter/Talking points:
Dear Congressman/Senator,
I am writing to urge you to support immediate assistance to the American auto industry. I understand you will be meeting next week to discuss this critical issue and ask that you consider the following points in supporting the swift passage of the amendments authorizing this much needed financial aid.
The auto industry is facing an unprecedented crisis. The global financial and economic crises have sent auto sales tumbling in the U.S. to an annual rate of 10.8 million vehicles in the month of October, the lowest rate in 25 years. This has resulted in the auto companies burning through their cash reserves at unsustainable rates, calling into question their ability to survive the current downturn.
The survival of the Detroit-based auto companies is critically important for several reasons. Three million jobs are directly and indirectly dependent on the companies. In addition, almost one million retirees receive pension and health care benefits from the companies. All of these jobs and retirement benefits would be jeopardized by a collapse of the companies.
The federal government needs to take a number of steps to address the crisis in the automotive sector:
* The Treasury Department and/or Federal Reserve need to use the tools at their disposal to provide an immediate infusion of $ 25 billion in capital to the auto companies to enable them to have sufficient cash to continue their operations during the coming months. The Treasury Department could use its authority under the recently enacted financial bailout package; the Federal Reserve also has authority to provide this type of assistance in exigent circumstances.
* Congress should also approve a new program of $ 25 billion in low interest loans to the automakers to help them meet their obligations to fund the retiree health care VEBA. This will ensure that the retirees and their dependents receive their promised health care benefits. In addition, by easing this financial burden on the auto companies, this will help make private financial institutions more willing to extend loans to the auto companies to provide them with the necessary resources for continuing their operations.
* The Treasury Department and FDIC should act immediately to restore liquidity to the auto sector - including consumers, dealers, and manufacturers - by using the tools at their disposal to assist the auto financing arms. This includes using the TARP program (Troubled Asset Relief Program) to deal with troubled assets (both auto and mortgage loans), and approving pending applications from Ford and Chrysler for industrial loan corporations.
* The Department of Energy should act quickly to implement the existing $25 billion loan program to help the auto companies retool facilities in this country to produce advanced technology vehicles and their key components. This will provide assistance to the auto companies, while ensuring that the vehicles of the future are produced in the United States, creating jobs for American workers.
Again, I am urging to you to support immediate and substantial assistance to the automobile industry and in turn to our economic recovery. We can not afford to let this opportunity pass.
Sincerely,
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THANK YOU for doing this (if you chose to.) The Auto industry is vital to MI jobs/economy. Please feel free to C&P and pass along to anyone you know who would be willing to do this too.
Sorry for the random post, but this is important