Just started.

The Union of Concerned Scientists has a witness. If only the environmental activists could design the car, THAT would solve our domestic auto industry’s problems.

What we pick up riding the range…

Associated Press, “Democrats at work to tap bailout for automakers”

Detroit News, “Dems push $25B for Big 3, fed equity stake — Auto CEOs, UAW chief to testify next week; Bush opposes tapping $700B bailout fund”

Washington Post, “Showdown Begins Over Lifeline to Automakers — White House Opposes Use Of Financial Rescue Funds“:

The Bush administration signaled yesterday that it would reject a proposal by congressional Democrats to immediately advance $25 billion in government loans to ailing Detroit automakers.

The White House and Treasury Secretary Henry M. Paulson Jr. made clear that while they are open to helping the auto industry, they are strongly opposed to Democrats’ plans to carve cash out of the government’s $700 billion financial rescue program. Despite those warnings, Rep. Barney Frank (D-Mass.) said he would move ahead and draft legislation, setting up a final showdown with the Bush administration.

Lots of “showdown” rhetoric there. Well, since Dodge is a prominent domestic auto brand…

Chairman Frank’s has scheduled his portion of the policy duel at the House Financial Services Committee hearing next Wednesday, November 19, “Stabilizing the Financial Condition of the American Automobile Industry.” Details — which are scanty right now — here.

• Washington Post, “House to Consider Auto Aid“
• Washingon Post, “Federal Bailout May Include Credit Card, Loan Companies“
• Workday Minnesota (a union-oriented publication), “UAW president urges action to aid auto industry“
• USA Today, “Pelosi calls for auto industry help to be on House agenda“
• Heritage Foundation, “Morning Bell: No ‘Change’ Coming to Corporate Bailout Parade“
• ABC The Note, “Obama Gambles on Bailout Bill“
• Washington Examiner editorial, “No Bailout Without Big Changes in Detroit“

We’re sure seeing a lot of that last sentiment, sometimes with the criticism focused on the unions and high labor costs, sometimes focused on past errors of Detroit.

The NAM’s position was expressed in a statement last week by NAM President and CEO John Engler:

The automotive sector is the country’s largest manufacturing industry, and it accounts for approximately 20 percent of our manufacturing GDP. Automakers are actively restructuring and modernizing to become more competitive while at the same time meeting new standards imposed by Congress. But the fact is that this evolution takes time and money that the automakers just don’t have right now.
�
Financial and market instability, an ongoing credit squeeze, and closed capital markets have drained the liquidity from automakers’ operations.  Auto sales have plummeted along with consumer demand and confidence, really cutting back on automakers’ revenue. A partial or total failure of a major auto manufacturer would have a massive economic ripple effect on the entire U.S. economy. And the serious economic troubles affect far more than just the major auto companies. It’s the manufacturers, the suppliers, the dealers and all the way down the chain.
�
The auto industry in America cannot be sustained under these extraordinary economic conditions without additional support.
 

Lots of straightforward stories today like this in the L.A. Times, “Democrats, interest groups compete to set Washington’s agenda.”

And this one, another angle or emphasis, from McClatchy, “Big business prepares for a less friendly Washington.” And its flip side, from The Hill, “With strengthened hand on the Hill, liberal lobbies dreaming of big gains.”

But for a more focused look at the business perspective, this is a good piece by David M. Dickson in The Washington Times, “Business offers to assist Obama in solving crisis,” with the sub-hed, “Credit crunch a key concern.”

A day after Democrats achieved an across-the-board electoral victory, business leaders pledged Wednesday to work with the new Obama administration and Congress, emphasizing the need to solve the credit crunch and get the economy growing again.

The Business Roundtable, the National Association of Manufacturers and the U.S. Chamber of Commerce all extended congratulations to President-elect Barack Obama, while laying out the priorities of the nation’s private sector.

Business leaders emphasized the immediate need to address the credit crisis and to reinvigorate the economy, even though the new administration will not take office for 11 weeks.

“Credit issues are at the forefront,” said NAM President John Engler at a Washington briefing. “Manufacturers are severely impacted by the credit squeeze. Companies with solid balance sheets, good credit histories and order backlogs cannot obtain routine financing.”

Another story of interest from the Wash Times, too, “Obama’s plate already full,” with talk of the financial crisis.

John Engler, president and chief executive officer of the National Association of Manufacturers, said the country’s struggling automakers are one sector that can’t wait until Mr. Obama is inaugurated Jan. 21. Without federal help soon, he said, No. 3 car maker Chrysler may not be around for the Obama administration.

“It’s a long time until January,” Mr. Engler said. “Part of the transition has to involve these issues.”

In the flood of post-elections coverage, the National Association of Manufacturers and our president and CEO John Engler were asked to comment on a variety of issues, and high on the list were the economic stimulus legislation and the troubles of the auto industry. A sample…

Detroit News, “Automakers optimistic help may be on the way“:

The dire situation facing the automakers will become even clearer on Friday, when GM and Ford Motor Co. are expected to report substantial third-quarter losses and announce new cuts to curtail losses. The companies collectively lost $24 billion in the second quarter.

“At this point they are looking forward to a future that’s a pretty grim one,” said John Engler, president of the National Association of Manufacturers, adding that policymakers have to act fast. “Nature is going to take its course before (Obama) even takes office in January.”

Reuters, “US approves loan rules, auto execs lobby for more“:

President-elect Barack Obama courted U.S. automakers and pledged help, but the industry’s health is deteriorating so rapidly it may not be able to wait for him to take office.

‘He’s not here until January (20th) and that’s a long time in the life of these companies at the moment,’ John Engler, a former Michigan governor and president and chief executive of the National Association of Manufacturers, said.

CityNews.ca, a Toronto news site, “Auto Makers Want $25 Billion No-Strings Attached Loans To Avoid Up To A Million Layoffs”

GM and Chrysler are both talking merger. And talk about Hobson’s choice. It’s estimated a joining between the two could cost 24,000-35,000 jobs, close half of the latter company’s 14 manufacturing plants and shed another 50,000 jobs amongst suppliers. 

And that’s the best case scenario, because if Chrysler goes out of business, up to a million positions could disappear.

“It’s not just the three auto companies, it’s suppliers, all the way down the chain,” worries John Engler of the National Association of Manufacturers.