US AUTOMOBILE INDUSTRY

Senator Bill Nelson (Fl) 12-05-08:

In my judgment, the Big Three auto makers have arrived at this point through their own poor management. The fact that so many American manufacturing jobs are at risk is the only reason these companies deserve any taxpayer assistance. In order to avoid digging ourselves into a deeper economic hole, we must take action. But we cannot simply have another bailout. Any assistance from the government must come in the form of a loan with significant strings attached to force these companies to restructure the way they do business.

First, we must insist that the Big Three increase their average fuel economy to 50 miles per gallon by 2020. Automakers must also increase production of flex-fuel, electric, and plug-in hybrid vehicles. Foreign car companies have been building fuel efficient cars for years, and now in this era of volatile gas prices, the American manufacturers find themselves at a disadvantage.

We must also ensure that no taxpayer money goes to reward the people who got us in this situation in the first place. Shareholders in these companies should not receive dividends until they return to financial health. We must place limits on executive compensation and eliminate golden parachutes. Finally, we must insist that these companies replace their senior management. We need new leadership and fresh ideas to get us out of this mess.

I am committed to keeping America on the leading edge of manufacturing and technological innovation.

*** Thank you Senator Nelson! ***