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.

Two items, one linked to but now sufficiently highlighted yesterday, the Detroit Free Press editorial, “Hey, America: Detroit’s automakers are asking for a loan“:

Can we get something straight between Detroit and the rest of America?

What the auto industry is seeking in Washington is a loan, L-O-A-N, as in something you borrow and then pay back — with interest.

This is not a gift, a grant or a handout. It’s a loan, the kind of thing financial institutions used to do before they all had to scurry to Washington for their own bailouts, which have been far bigger and subjected to considerably less scrutiny than this loan that the auto industry desperately needs to keep operating — and keep millions of people employed.

And an interesting suggestion from Hugh Hewitt, law professor, radio host, Republican, blogger, “Should the GOP Bargain On The Bailout?”

If the GOP’s leadership in the Senate calculates that it must go along with the bailout of the Big Three because of the overall weakness in the economy, I hope they at least bargain for some concession such as a giant tax restructuring for Michigan and Ohio, a demonstration project on the economic effects of tax reform.  If the UAW and industry supporters are going to succeed in opening a fiscal lifeline to Detroit, couldn’t the GOP at least demand that all of Michigan and Ohio provide a demonstration of what a lower corporate tax rate can mean for an economy.  Call them Irish Zones, after the tax policy of the Republic of Ireland, and declare that companies headquartered in Michigan or Ohio will pay 12.5% corporate tax, as all corporations do in Ireland.

Related story: The New York Times runs a post-mortem on the Saturn experiment at GM.

Posted at the Senate Committee on Banking, Housing and Urban Affairs:

BIG THREE RESTRUCTURAL PLANS PRESENTED TO CONGRESS

December 2, 2008

Click for Ford Motor Company’s Report and Restructural Plan Presented to Congress Click for Ford Motor Company’s Restructural Plan Appendix Powerpoint Click for General Motors Corporation’s Letter about Restructural Plan  Click for General Motors Corporation’s Report and Restructural Plan Presented to Congress Click for Chrysler Corporation’s Letter about Restructural Plan Click for Chrysler Corporation’s Report and Restructural Plan Presented to Congress Click for Chrysler Corporation’s Appendix: Areas of inquiry

Coming up this morning, the Senate Committee on Banking, Housing and Urban Affairs holds a hearing… 

US Senator Christopher J. Dodd Chairman US Senator Richard Shelby Ranking Member

Committee:

Title: The State of the Domestic Automobile Industry: Part II

Date: 12/4/08

Time: 10:00 AM

Place: 106 Dirksen Senate Office Building

Publication: Printable Hearing not available at this time

Witnesses

Panel 1   Mr. Gene L. Dodaro , Acting Comptroller General, United States Government Accountability Office Panel 2   Mr. Ron Gettelfinger , President, International Union, United Automobile, Aerospace and Agricultural Implement Workers of America   Mr. Alan Mulally , President and Chief Executive Officer, Ford Motor Company   Mr. Robert Nardelli , Chairman and Chief Executive Officer, Chrysler LLC   Mr. G. Richard Wagoner , Jr., Chairman and Chief Executive Officer, General Motors   Mr. Keith Wandell , President, Johnson Controls, Inc.   Mr. James Fleming , President, Connecticut Automotive Retailers Association   Dr. Mark Zandi , Chief Economist and Cofounder, Moody’s Economy.com

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You watch the hearing online here.

The Senate Banking Committee has not yet posted the prepared statements from yesterday’s hearing, “Examining the State of the Domestic Automobile Industry,” but the testimony  was available elsewhere:

• Rick Wagoner, General Motors, Chairman and Chief Executive Officer
• Alan Mulally, Ford Motor Company, Chairman and Chief Executive Officer (full prepared testimony here).
• Robert Nardelli, Chrysler, Chairman & CEO, Chrysler LLC
• Ron Gettelfinger, President, United Auto Workers

Don’t immediately see the statements from Sen. Debbie Stabenow (D-MI) and University of Maryland economist Peter Morici.

The three auto executives and UAW’s Gettelfinger are also slated to testify before the House Committee on Financial Services at 10 a.m. today, the hearing entitled, “Stabilizing the Financial Condition of the American Automobile Industry.”

The other panel should have its moments of interest:

• Mrs. Annette Sykora, Chairman, National Automobile Dealers Association
• Mr. James S. McElya, Chairman and Chief Executive Officer, Cooper-Standard Automotive, Inc.
• Professor Jeffrey D. Sachs, Director, The Earth Institute; Quetelet Professor of Sustainable Development and Professor of Health Policy and Management, Columbia University
• Dr. Matthew J. Slaughter, Professor of International Economics, Tuck School of Business, Dartmouth College

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.

• Dow-Jones, “Manufacturers Call On Congress To Approve Loans To Auto Cos“: “WASHINGTON -(Dow Jones)- The National Association of Manufacturers Wednesday urged the U.S. Congress to approve a federal loan program that would provide up to $50 billion to the bruised automotive industry…’Now is the time for Congress to keep their promise to provide these loans,’ NAM President John Engler said in a prepared statement.”
• The Detroit News, “Groups back auto industry loans“: “WASHINGTON — Direct loans to the auto industry drew additional support Wednesday from two influential groups, the United Auto Workers and the National Association of Manufacturers. “
• Detroit Free Press, “Federal cash to aid electric R&D“: “A top Chrysler executive Wednesday said multibillion-dollar loans to the U.S. auto industry would help automakers, such as Chrysler, come to the market quicker with electric cars…’I think it will allow everybody to bring electric cars, plug-in hybrids, hybrid cars, even range-extended hybrids. All of those vehicles will be accelerated,’ Jim Press, a Chrysler president and vice chairman, said after a speech to the Automotive Press Association in Detroit.”

NAM President and John Engler’s statement follows:

Manufacturing is the mainstay of the U.S. economy, providing a primary impetus for economic growth, and accounting for 75 percent of export growth this year. The automobile industry is a key to U.S. manufacturing; it is imperative to our nation’s economic future that this vital sector be strong and competitive.
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