U.S. Representative Rick Larsen (WA-02) released the following statement after voting for the Auto Industry Financing and Restructuring Act (HR 7321). The legislation passed the House on Wednesday evening.
“I supported this legislation to save jobs. I am convinced that if the federal government fails to act, the U.S. auto industry will collapse. One out of every ten American jobs is tied to the domestic auto industry, some of them in my district. Congress must act to save as many of these jobs as we can.
“Bankruptcy is not a viable option. For our domestic auto industry, going into bankruptcy would mean going out of business. Buying a car is not a one-time transaction, but a commitment to maintenance and customer service in the future. If auto companies filed for bankruptcy, customers would stop buying their cars, carmakers would close their doors, and jobs would be lost.
“The legislation we passed today provides up to $15 billion in short-term bridge loans to help the American auto industry survive the immediate crisis. This is a loan, not a handout, and we will require it to be repaid in full.
“As Congress has considered requests for help from the car companies, my top concern has been ensuring that any assistance we give them is a smart investment of taxpayer money.
“This bill requires that taxpayers be repaid first and that taxpayers are first in line to benefit from future profits. It bans golden parachutes and eliminates bonuses for highly-paid executives at taxpayer expense. And it creates a “car czar” to hold the auto makers accountable for holding up their end of the deal and putting in place restructuring plans that work.
“This legislation protects federal investments in advanced technology to improve efficiency and reduce greenhouse gas emissions.
“Help for the American auto industry is just one step on the road to economic recovery. More must be done, and done soon. I will keep working to pass an economic recovery and job creation package that creates jobs, puts Americans back to work, and helps our neighbors hardest hit by the recession.”