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Home > Blogs > Ohio politics > Archives > 2008 > November > 19 > Entry
Strickland, other governors urge U.S. aid for auto industry
Gov. Ted Strickland joined seven other governors today, Nov. 19, in urging congressional leaders to approve legislation directing $25 billion in loans to automakers and component suppliers.
“Because a bankruptcy in the auto industry during these troubling economic times would be crippling to efforts to immediately grow the economy, and because U.S. auto makers will be a critical component in developing an alternative energy industry in America, we urge Congress to pass this legislation immediately,” said a letter from the governors.
Their states would suffer from the industry’s collapse, the letter said:
“Governors have already struggled to manage state economies that have seen the loss of more than 1.2 million jobs in the first ten months of 2008. Further losses wold continue to depress an already fragile national economy, and would create an emergency situation in already struggling state economies.”
In an e-mail to reporters that accompanied the letter, Strickland’s office emphasized the loan’s importance to Ohio:
Ohio auto industry facts:
There are 44 Ohio counties reporting 500 or more employees directly related to motor vehicle assembly or parts production. (SOURCE: County Business Patterns - U.S. Bureau of the Census 2006)
Total Automotive employment in Ohio: 127,000 (2006)
Of those 127,000, 28,000 are auto assembly and the remainder, 99,000, are in various parts supply.
The letter went to House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Harry Reid, D-Nev., House Minority Leader John Boehner, R-West Chester and Senate Minority Leader Mitch McConnell, R-Ky.
Other governors signing the letter were: Jennifer Granholm, Michigan; Rod Blagojevich, Illinois; David Paterson, New York; M. Michael Rounds, South Dakota; Ruth Ann Miner, Delaware; Steven L. Beshar, Kentucky and Jim Doyle, Wisconsin.
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Comments
By LizardKingLives
November 21, 2008 11:10 PM | Link to this
Remember this week, as it may be recorded as the start of Great Depression 2.It is clear that the Amer people (gov) is willing to sacrifice the Big 3 and throw deeper into this financial crisis.I know they say they will revisit it in early dec but I just dont see it happening, but I do see the Dow falling to the 5000’s and many working class americans suffering.2009 may be the year of unemployment and welfare and not recovery.By Pete
November 21, 2008 10:49 AM | Link to this
Every time someone gets caught doing wrong, it’s because of GREED! Scam artists, burglars, bank robbers, CEOs, etc…. IT’S ALL GREED! Who would hook me up if I got greedy & all of a sudden needed to be bailed out? No one, that’s who! I say let ‘em fail!By TRS
November 20, 2008 12:54 AM | Link to this
I don’t think we should let them die, but they have to show us they want to live on. Assume for a moment the economy turns around tomorrow. GM and the others will still have labor costs twice what Toyota and others have along with a labor pool where they pay people not to work. They will still have franchise obligations they need to rid themselves of as well as idle real estate and many other expense. Even with the money requested and more, for these reasons they will not be able to compete and will continue a downhill spiral toward liquidation. Then there will be no jobs. In the hearings I heard nothing from the CEOs about how they were going to deal with any of these issue and the UAW head Gettelfinger gave a phone interview saying that the unions would make no more concessions. Neither management nor labor sound like they want to make the hard choices necessary to solve the problem and until they do, the American people are not going to buy into any bailout. The new Congress and Administration might because they are beholding to the unions. Anyone hear Barney Frank say something about income inequality today? It seems their answer is Card check to make it easier for the unions who ruined the auto industry to organize the other auto companies and make them all inefficient and non competitive. Thats a socilistic concept and that is where many in the Congress are coming from who favor this bailout. One thing that people continue to forget - Congress has already authorized 25B to the auto industry - all they need to do is modify the terms and they could use that money.By LizardKingLives
November 19, 2008 9:09 PM | Link to this
3 mil americans in unemployment lines, increased prices for the foriegn autos (lack of competition from the big 3 will do this),increased gov spending on social welfare programs,thousands of retires having their pensions drasticaly cut,decreased buying of Amer autos,more home foreclusures,even tighten credit restrictions,thousands $ lost for investors,financial times not seen since the great depression (can u say 5000 DJIA as experts say r possible),etc.etc.etc.That is definitely the kind of America I want to live in (NOT) but that is what we are in for if we let the big 3 go bankrupt.I am not wanting a bailout(LOAN),but it is a must do thing or we all suffer (not the CEOs or high level execs but the common folk). For yrs I have heard people complain about Amer industry taking jobs overseas and now we can help prevent loss of potentially millions of jobs, but we are turning out backs on a crucial American Industry.There R no guarantees a bridge loan will work (most likely the Big 3 will need more help down the road) but what is certain is the ripple effect of the big 3 failing.I simply ask if your will to risk that your job is safe from the ripple effect?By TRS
November 19, 2008 6:16 PM | Link to this
What’s their plan? How are the going to get rid of the obligations they are in which suck them dry? How are they going to cut labor costs (their total benefit is 72/hr vs 48/hr for other manufacturers). There is something to be said for the national security argument in that we need a manufacturing base and if not now, the Democrats will come up with some sort of bailout next year; but, unless they get a business plan with dramatic changes they are creating a money pit.By don
November 19, 2008 6:09 PM | Link to this
union pay—union bennies—outlandish pensions from top to bottom. Looks just like the education system. And they all produce nothing of good qualityBy DALE 78
November 19, 2008 4:22 PM | Link to this
hey JANE do you think you would be hurting the CEOS if GM went bankrupt. Not hardly they would just fly off into the sunset with their pensions. The workers and the retirees would bear the brunt of this decision .By depression
November 19, 2008 4:03 PM | Link to this
To all who believe that they will drive what they have or buy foreign cars-consider this the same parts suppliers that supply the big 3 are the same ones that provide parts to foreign car companies. not paying them because of being bankrupt means they won’t be able to pay their bills! What do you think happens then? They go out of business! Look at the situation Dayton is in now with just DELPHI and Moraine assembly closing! Suppliers that supplied those plants are closing. WAKE UP!!!!!!!!By Greed
November 19, 2008 3:45 PM | Link to this
Greed-CEO’s Corp. not paying a fair wage in early days which started Unions. Greed-Unions good at one time, but took advantage of their power and have crippled corp. Greed-Employee’s no show, or little work as possible/do drugs at work etc. Count on Union for job security and above average salaries. RESULT: Poor Quality Cars and Sales. Strikes etc.. costing corp millions of dollars. You Reep What you Sow. BailOut? Not for the same old same old.By Jeff
November 19, 2008 3:21 PM | Link to this
Hmm… Of those 127,000 auto industry workers, how many are building vehicles are supplying parts to Honda, Toyota, or some other automaker that doesn’t need to be bailed out? Being an auto industry related employee (not for the 3), I’ve seen how poor leadership, bad union contracts, and layer upon layer of waste and paper pushers has doomed the crumbling 3. Efficient companies will continue to build cars in America.By Patty
November 19, 2008 2:30 PM | Link to this
Sure would be nice if Strickland actually listened to the people he works for. Auto parts…hmm I guess if GM goes bankrupt I don’t need parts for my car anymore?! Seems to me I am going to need parts for my car for quit awhile since they make such crappy cars. I cannot afford a new car, nor do I find it efficient. I pay cash and buy used when needed. Seems to me the used car business will get a lift as GM shrinks, which means auto parts will get a lift too! Sounds like a win just not for the big 3!By Jayne
November 19, 2008 2:23 PM | Link to this
NO AID. Not one penny. They should file Chapter 11, sell their private jets, eliminate multimillion dollar Super Bowl ads, cut CEO salaries, bonuses and huge conventions. I bet they would get their “desperately” needed $25 billion pretty quick.By William
November 19, 2008 1:48 PM | Link to this
I say let em design build and produce cars that are better than the competition without $50/hr pay rates and $100 million bonuses for the execs, THEN they will be profitable and not to have to worry about a hand out.