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Smith Voices Opposition to Auto Bailout Legislation

Press Release

Date: Dec. 11, 2008
Location: Washington, DC
Issues: Business and Consumers Finance and Banking Government Budget and Spending Energy


Smith Voices Opposition to Auto Bailout Legislation

Rep. Adrian Smith (R-NE) today voted against legislation to provide $15 billion in government loans to three automobile companies - General Motors, Ford, and Chrysler.

Declining car sales, increasing government mandates, and higher overhead costs (compensation for unionized workers for American automotive companies are estimated at $73.20 compared to Toyota's $48 per hour) have put the Detroit automakers in dire financial straits.

The legislation also requires an appointment of a "Car Czar" to authorize, allocate and direct the disbursement of funds to the auto manufacturers from these previously authorized through the Energy Independence and Security Act.

"Every American and every American town is struggling. We need to enact policies which truly benefit every town, not just Detroit. Auto companies need to revamp their practices and must invest in new ideas such as energy research and sound business management if they are going to survive. Otherwise we are heading down a dangerous road of bailing out private institutions rather than letting the market take its course," Smith said.


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