The U.S. federal government is working to construct an orderly exit from its involvement with the automobile industry, while stabilizing the auto giants and saving jobs, said Ron Bloom, a senior advisor at the U.S. Treasury Department.
Bloom testified today before the Senate Banking Committee, along with Dr. Edward Montgomery, White House Director of Recovery for Auto Communities and Workers.
Committee Chairman, U.S. Sen. Chris Dodd (D-Conn.) explained that the hearing was unique. He said it was the first time it would have the opportunity to hear directly from Obama administration officials in charge of supervising federal assistance to the auto industry.
“Let us remember-Not too long ago, it seems an American could walk a city block without sensing the strength of an American automaker’s brand. Their labels adorned buses, railcars, and aircraft. They dominated the U.S. automobile market,” said Dodd. “Today, those images have faded. For the first time, the domestic market share for Ford, Chrysler and GM has slipped below 50 percent, going form 66 percent in 2001 to just 47 percent today.”
Bloom explained to the committee that the restructuring process that followed both GM and Chrysler filing for bankruptcy has required “deep and painful sacrifices from all stakeholders,” including workers, suppliers, dealers and the communities that rely on the auto industry.
The Obama administration made it clear in February that it’s auto task force wanted to handle the auto restructuring process in a commercial manner. That is to ensure that all stakeholders are treated fairly and that the government’s involvement doesn’t change how much they receive, according to Bloom.
Earlier today, House Majority Leader Steny Hoyer (D-Md.) and U.S. Rep. Christopher Van Hollen (D-Md.) held a press conference with colleagues and automobile dealers.
Hoyer said, “Two Sunday’s ago I was on a phone call with the White House who was helping us make our policy effective and I asked them, what money does it save the manufacturing General Motors or Chrysler if you shut down a dealership? Answer...zero.”
U.S. Rep. Frank Kratovil (D-Md.) was also present for the press conference and said the way things are being handled could be viewed as a “bailout for the big guys but a force out for the little guys.”
When Will The Government Get Out Of The Auto Industry And How Soon?
The U.S. federal government is working to construct an orderly exit from its involvement with the automobile industry, while stabilizing the auto giants and saving jobs, said Ron Bloom, a senior advisor at the U.S. Treasury Department.
Bloom testified today before the Senate Banking Committee, along with Dr. Edward Montgomery, White House Director of Recovery for Auto Communities and Workers.
Committee Chairman, U.S. Sen. Chris Dodd (D-Conn.) explained that the hearing was unique. He said it was the first time it would have the opportunity to hear directly from Obama administration officials in charge of supervising federal assistance to the auto industry.
“Let us remember-Not too long ago, it seems an American could walk a city block without sensing the strength of an American automaker’s brand. Their labels adorned buses, railcars, and aircraft. They dominated the U.S. automobile market,” said Dodd. “Today, those images have faded. For the first time, the domestic market share for Ford, Chrysler and GM has slipped below 50 percent, going form 66 percent in 2001 to just 47 percent today.”
Bloom explained to the committee that the restructuring process that followed both GM and Chrysler filing for bankruptcy has required “deep and painful sacrifices from all stakeholders,” including workers, suppliers, dealers and the communities that rely on the auto industry.
The Obama administration made it clear in February that it’s auto task force wanted to handle the auto restructuring process in a commercial manner. That is to ensure that all stakeholders are treated fairly and that the government’s involvement doesn’t change how much they receive, according to Bloom.
Earlier today, House Majority Leader Steny Hoyer (D-Md.) and U.S. Rep. Christopher Van Hollen (D-Md.) held a press conference with colleagues and automobile dealers.
Hoyer said, “Two Sunday’s ago I was on a phone call with the White House who was helping us make our policy effective and I asked them, what money does it save the manufacturing General Motors or Chrysler if you shut down a dealership? Answer...zero.”
U.S. Rep. Frank Kratovil (D-Md.) was also present for the press conference and said the way things are being handled could be viewed as a “bailout for the big guys but a force out for the little guys.”