[Congressional Record (Bound Edition), Volume 155 (2009), Part 12]
[Senate]
[Pages 15818-15819]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    AMERICAN AUTO INDUSTRY OWNERSHIP

  Mr. NELSON of Nebraska. Madam President, I rise to discuss a ``Sense 
of the Senate'' resolution I have submitted with several colleagues to 
address the government's recent move to take significant ownership 
stakes in two icons of American business: Chrysler and General Motors. 
Joining me as cosponsors are Senators Collins, Landrieu, Lieberman, 
Klobuchar and McCaskill.
  This resolution puts the Senate on record and makes absolutely clear: 
the Federal Government is a ``temporary shareholder'' in GM and 
Chrysler, and it should divest its shareholder position as 
expeditiously as possible.
  No one ever wanted the government to be in the car business, but the 
alternative was worse and the turmoil in the auto industry extends far 
beyond Detroit as most Americans know.
  Dealerships across my State of Nebraska are feeling the impacts of 
decisions made by automakers following their bankruptcies. Chrysler has 
decided to terminate franchise agreements with 9 dealerships in 
Nebraska and GM intends to terminate franchise agreements with 21 
dealerships in Nebraska.
  These decisions are affecting dealerships and their employees in 
communities such as Arapahoe, Hastings, David City, Omaha, Auburn, 
Milford, Lincoln, Scottsbluff, and West Point have already been 
impacted by the auto bankruptcies. Auto parts manufacturing plants in 
communities like Kearney, Cozad, Grand Island, and Seward are also 
feeling the results of the downturn in the auto industry.
  According to the Nebraska New Car and Truck Dealers Association, more 
than 13,600 Nebraskans work in jobs tied to the auto industry in my 
State and account for $267 million in wages for Nebraska individuals 
and families.
  However, now that an investment has been made, we owe it to the 
American taxpayers to be clear about what will happen with their money.
  The resolution states that the Federal Government is a temporary 
stakeholder in the American automotive industry and should take all 
possible steps to protect America on taxpayer dollars and divest its 
ownership interests in such companies as expeditiously as possible.
  The government should not be involved in day-to-day operations, and 
as soon as the auto companies have regained their financial footing the 
government must divest. Its involvement should not be open-ended.
  Further, this resolution calls on the Government Accountability 
Office and the inspector general for the Troubled Assets Relief 
Program, or TARP, to continue providing oversight. In addition, the GAO 
and inspector general will report to Congress on automotive companies 
receiving financial assistance, so that the Federal Government may 
complete divestiture without delay.
  This is not a partisan issue. Our deep economic crisis has already 
cost millions of Americans their jobs, and to add a collapse of the 
auto industry could add a devastating blow it would take years from 
which to recover.
  We have had Presidents of both political parties recognize the need 
to address the current downfall of the auto industry and recognized the 
need to remove government involvement as quickly as possible.
  On December 19, 2008, President Bush stated: ``The actions I'm 
announcing today represent a step that we wish were not necessary. But 
given the situation, it is the most effective and responsible way to 
address this challenge facing our nation. By giving the auto companies 
a chance to restructure, we will shield the American people from a 
harsh economic blow at a vulnerable time and we will give American 
workers an opportunity to show the world, once again, they can meet 
challenges with ingenuity and determination and bounce back from tough 
times and emerge stronger than before.''
  On March 30 this year, President Obama stated: ``We cannot, and must 
not, and we will not let our auto industry simply vanish. This industry 
is like no other--it's an emblem of the American spirit; a once and 
future symbol of America's success. It's what helped build the middle 
class and sustained it throughout the 20th century. It's a source of 
deep pride for the generations of American workers whose hard work and 
imagination led to some of the finest cars the world has ever known. 
It's a pillar of our economy that has held up the dreams of millions of 
our people. . . . These companies--and this industry--must ultimately 
stand on their own, not as wards of the state.''

[[Page 15819]]

  So, to conclude, the government's move is aimed at providing 
stability for the automotive industry and for American workers across 
our great Nation in these uncertain economic times.
  Our sense-of-the-Senate resolution affirms what the President has 
made clear: taxpayers should be protected and the government should get 
out of the auto business as soon as possible. Through this resolution, 
the Senate leaves no question about the government's future role in the 
U.S. auto industry.

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