Georgia and Tennessee Senators oppose Auto Bailout

I have to agree with them, and this is my main points. What did the banks do with their bailout? They gave it to their ceo's and presidents as bonuses and thing like that. Also how did the auto makers come to Washington to beg for a bailout. They flew in on their private jets that belonged to their respective companies. You think they could of saved some money. Yeah they are really hurting for money.


WASHINGTON, With Democrats pushing a bailout of the automobile industry, Tennessee and Georgia Republican senators appear unlikely to support such a measure, though they said they would wait to see what specific proposals are unveiled today.

"This economic crunch is difficult for the auto industry, just as it is for most Americans, and the auto industry is especially important to Tennessee," said Sen. Lamar Alexander, R-Tenn. "I am closely monitoring proposals that affect auto jobs and will be ready to work on those proposals this week as the Senate reconvenes."

Democrats have proposed taking $25 billion from the $700 billion Wall Street rescue package that passed last month as aid for struggling domestic automakers. Democrats say the funds, which automakers could tap as a short-term loan, could help save millions of jobs. A vote is expected Wednesday.

"We are seeing a potential meltdown in the auto industry, with consequences that could directly impact millions of American workers and cause further devastation to our economy," said Sen. Majority Leader Harry Reid, D-Nev. "If ever there were a time for bipartisan solutions, this is it."

Many Republicans instead want automakers to tap into a $25 billion loan program that was part of last year's energy bill. That money has been designated to help car manufacturers improve their auto mileage standards, and Democrats say the money should not be used for any other purpose.

All four Tennessee and Georgia senators voted for the bill to raise auto mileage standards.

Sen. Johnny Isakson, R-Ga., said he opposes using the Wall Street rescue package to help automakers. Once the $700 billion plan is given time to unlock credit markets, all industries will benefit, he said.

"I would oppose giving the auto industry or any other manufacturer funds from the economic stabilization bill," he said. "I believe easing the credit markets will allow the markets to work and that consumers will regain confidence."

Representatives from General Motors, Ford and Chrysler, along with the head of the United Auto Workers Union, are scheduled to testify today before the Senate Banking Committee.

"Generally speaking today, I do not believe an equity infusion into these companies is an appropriate course of action," said Sen. Bob Corker, R-Tenn., a member of the committee.

Sen. Saxby Chambliss, R-Ga., locked in a runoff election against Democrat Jim Martin, has said he is opposed to an automaker bailout and that the industry's woes cannot be patched by an infusion of money.

"To just provide funding for the auto industry without significant restructuring on their part, that's not going to solve their problem," Sen. Chambliss said.

Mr. Martin, through a spokeswoman, said some help for automakers is needed, but any bailout should include measures that hold company executives accountable.

"The auto industry is in crisis and some action is necessary," said Kate Hansen, Martin campaign spokeswoman. "Jim does not, however, believe we should simply hand a blank check to auto executives without addressing the root causes of this crisis and ensuring that this won't happen again."