Panel I of a Hearing of the House Financial Services Committee - Stabilizing the Financial Condition of the American Automobile Industry

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REP. CANDICE MILLER (R-MI): Thank you very much, Mr. Chairman, the ranking member, as well as all the members of the committee.

I can't tell you how much sincerely I appreciate you calling this hearing and allowing all of us to come here today and make our case for saving millions -- millions of jobs -- not just in Michigan, but all across our great nation.

You know, a number of critics have said that the domestic auto industry is a dinosaur -- too fat to survive. But the truth is that over the last number of years, America's domestic auto manufacturers have made very tough decisions to make their operations cleaner and more competitive.

In Michigan, unfortunately, we've seen the loss of over 400,000 manufacturing jobs as the auto companies have restructured themselves. And if those critics who think there's just too much fat in the industry really think that, I would invite them to come to Detroit. Come to, for instance, Macomb County -- which I'm very proud to represent along with Sandy Levin and Carl as well — and to visit some of those who have been laid off; or maybe they could visit with some of those homes that are now in foreclosure; or visit some of those who have worked their entire life and are now fearful that their jobs are going to go away; or they could visit with some of the retirees who worked so hard to earn their pensions and now face a loss of substantial portions of their income, if their pensions are thrown into the PBGC; or, you know, perhaps they could tell those people that they are part of an unsustainable business model and that they need to be sacrificed.

The fact of the matter is that this industry, for all of its faults, has made very tough decisions. It's cut to the bone and it's dealt with crises after crises to return to profitability. It's been handed new government mandates -- regulatory mandates -- that the experts say will cost this industry as much as $86 billion in order to comply, and of course, this at a time of an economic downturn. It's dealt with skyrocketing health care costs and it's worked with its employees to make major concessions to help the company survive.

But the final blow was an economy in a meltdown situation, brought on not by the mistakes of the auto industry, but by those on Wall Street. And many have said that the problem with the domestic auto industry is that they don't make products we want to buy any more and that is simply untrue! Do you know which company actually makes the most models that get over 30 miles to a gallon? That is General Motors; or how about the car company that has the highest mileage SUV in the entire world? That company is Ford -- and I'm proud to by a Ford Escape hybrid.

It's General Motors that's working to bring the very next great innovation to the auto markets: The Chevy Volt extended range electric vehicle could revolution the industry and it will do it with American-designed and American-built technology.

So the domestic auto industry's problem is not a lack in product, because that product is getting better each and every day. The problem is a lack of customers brought on by the economic meltdown. The actions of Wall Street have stifled consumer confidence and they've frozen the credit markets and made auto loans unavailable for too many consumers.

Last year, over 16 million vehicles were sold in this country. And in October, the annualized rate of vehicle sales was at 11 million and that is the result -- that is not the result of the product. That is the result of consumer confidence and the availability of financing.

So this Congress just seven or eight weeks ago passed a $700 billion bailout of the banking industry to help Wall Street to better times and to free up credit. Seven hundred billion sent to those who caused the problem in the first place. And today, all we are asking is that 25 billion (dollars) of that money be targeted as a bridge loan to support the domestic auto industry.

And I would say this as well, Mr. Chairman, and all the members of the committee: I hope you think about the very rich, rich, rich heritage that the domestic auto industry has had on our nation. In times of need, in times of national crises, southeastern Michigan was actually, during World War II, we were known as the arsenal of democracy, because we had the manufacturing capability to build the armaments that literally led the world to peace! There were a couple years we didn't even produce automobiles, because we were producing tanks and jeeps and we were fully engaged in the war effort. And I hope we would think about that as we're looking at, perhaps, the demise of a huge segment of our manufacturing segment.

As well, after the horrific attacks of our nation of 9/11, when the terrorists were trying to bring our economy to its knees, it was the domestic auto industry -- led by General Motors, I would tell you -- that started the Keep American Rolling program with the zero interest financing and the rebates, et cetera, that kept the workers working, that kept Americans buying.

And I will also say this -- and let me just close on this: The domestic auto industry literally created the middleclass of this great nation! The middleclass was not created by AIG or Bear Stearns or Lehman Brothers or whatever. They might have created the upper class, but they did not create the middleclass. The middleclass was created by this great industry.

We are facing some tough economic times. We're asking for a loan -- not a bailout, but a loan. And I think it's entirely appropriate for this Congress to see that happen.

Thank you very much.

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