Stronger Chrysler
Madam Speaker, I rise today to praise the very hard work of this administration and the President's auto task force and the many stakeholders in Chrysler who came together in an effort to protect jobs and build a stronger, leaner and more…
Madam Speaker, I rise today to praise the very hard work of this administration and the President's auto task force and the many stakeholders in Chrysler who came together in an effort to protect jobs and build a stronger, leaner and more competitive Chrysler.
Chrysler's management is to be commended for making the hard decisions needed to form a new alliance with Fiat that will make the company stronger and more competitive in the future.
Many of Chrysler's creditors are to be commended for accepting a return on their investment that is more commensurate with the current market and will allow Chrysler to weather this economic crisis. Most importantly, Chrysler's workers are to be commended for sacrificing, so greatly, really, in accepting painful concessions that will allow the company to better compete. Because of all of this hard work, the foundation was laid for Chrysler to successfully restructure outside of bankruptcy.
But bankruptcy will now be required only because of the greed of a few Wall Street hedge funds that held a portion of Chrysler's debt. Much of that debt had been purchased at pennies on the dollar, but these hedge funds demanded a return much higher than what was being accepted by other lenders and much higher than what the current market would bear, Madam Speaker.
These hedge funds operate in an unregulated area of the economy, and they seem to care only about maximizing their profit, no matter what the cost. They have seemingly no concern for the workers or families that would be devastated by the destruction of Chrysler.
They demonstrate no concern for the communities across this Nation that depend on a healthy Chrysler. They show no concern for the myriad of companies that would be forced out of business because of their dependence on business with Chrysler. Their only concern seems to be their desire to squeeze the last drop of blood out of this company. Those who seek to game our financial system in a fashion that helps only them and hurts countless other Americans do not have the best interests of our economy or our Nation at heart.
President Obama said today that he does not stand with these greedy hedge funds, and neither do I. But I believe that the plan developed by Chrysler and its stakeholders is strong and will fare very well in a quick bankruptcy proceeding.
At the other end of this time, I believe that we will see a stronger, leaner, more competitive and healthy Chrysler that will continue to build some of the greatest cars in the world. Some of my colleagues, who may have advocated bankruptcy last December, will feel vindicated that this bankruptcy filing happened today, but they should not.
Those who oppose bridge loans and called for a bankruptcy filing last December, in my opinion, held a position that would have led to a disorderly bankruptcy in the liquidation of this iconic American company. Such a bankruptcy would also have led to far greater burdens being placed on the American taxpayers when they would have had to absorb higher workers' pensions, health care costs and unemployment benefits. Those costs would have been much higher than what has been extended in bridge loans.
Fortunately, President Bush thought better and provided those bridge loans and bought this important company important time to reconstruct and to construct a strong viability plan.
Fortunately, President Obama and his auto task force worked in good faith with all of the stakeholders to put that viability plan together, and they are offering the continued support needed to see that the plan is going to have a successful conclusion. And what is included in that plan?
Madam Speaker, most importantly, no plant closures or new job losses. It calls for a strategic partnership with Fiat that will provide innovative technology to build outstanding fuel-efficient vehicles based on that technology right here in America. And it will also give Chrysler's outstanding products, like Jeep, enhanced access to the European market.
It also ensures that every single dime of taxpayer money will be repaid before Fiat can take majority control of Chrysler. So jobs will be saved. More fuel-efficient cars will be built here by American workers and the taxpayers will have their investment returned.
Now we will continue to look to the future, and there is more that we must do here in Congress to make certain that not only does Chrysler have short-term viability and long-term viability as well, but also that the entirety of the American auto industry does as well.
The most important thing that we can do here to help the auto industry is to help spur sales. Madam Speaker, we only need to look to Europe, South America or Asia for plans that are actually working. Eighteen countries already have implemented fleet modernization programs, and every Nation that has done so has seen auto sales rise, while every country that has not has seen auto sales plummet in this difficult economy.
That's why I was proud to introduce my partisan implementation to implement a fleet modernization plan, better known as ``Cash for Clunkers,'' right here in America. Our plan would provide consumers with a point-of-sale voucher to turn in older, less fuel-efficient vehicles for new more modern more fuel-efficient cars and trucks.
I would urge my colleagues to research our proposals and to join us in that.