Emergency Loan to Automakers

Press Release

Senator Chuck Grassley released the following statement after President Bush announced that General Motors and Chrysler will receive $13.4 billion in emergency loans through the Troubled Asset Relief Program.

"The legislation before Congress last week failed to meet my criteria for a bailout. Similarly, I'm not sure the Administration's plan passes my test for putting billions of taxpayer dollars at risk, especially given the Department of Treasury's weak enforcement since October of executive compensation restrictions. Also, this multi-billion dollar plan will likely be just a small down payment for an industry that has extremely high labor costs and very little to show in assets. No one wants to see these American institutions fail, but they need to use this opportunity to make drastic changes in the way they do business. Oversight of these dollars will be critically important so that taxpayers are not paying for a band-aid that doesn't do anything about a larger problem. I'll continue to ask questions of the auto executives, union leaders and Treasury officials to try to see longer term viability of the auto industry achieved."

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