Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

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Kohl, Feingold back auto bailout

Democratic congressional leaders announced Thursday that the proposed automobile bailout package, a plan supported by both Wisconsin senators, will not go through until the three big Detroit automakers develop a plan.

The proposed bailout package would give $25 billion dollars in aid to automobile makers, including the three largest Detroit automakers: General Motors, Chrysler and Ford.

Democratic U.S. Sens. Herb Kohl, and Russ Feingold announced their support Wednesday.

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Kohl said in a statement that while the auto industry is currently troubled, it is a vital industry in the country. However, he said any aid must come with strong conditions of accountability for the auto companies.

“Help cannot be a throw of the dice, but rather must come with accountability and the expectations these companies will undergo big changes that lead to their renewal and revival,” Kohl said.

Kohl supports assistance from Congress in the form of a loan with the preconditions of change in labor and management that would provide accountability to and protection for taxpayers.

Feingold said in a statement that Congress should use some of the money from the Wall Street bailout funds to help automakers.

Congress has already approved the $700 billion bailout plan for Wall Street.

“If Congress can provide $700 billion to bail out Wall Street, it ought to be able to devote some of that to helping millions of Americans keep their jobs,” Feingold said.

According to Feingold, if the United States auto industry collapses, it will negatively impact the manufacturing base and wreck the already struggling economy. It could end up costing taxpayers even more in pension guarantees, unemployment benefits and other costs.

Feingold called for a rescue package requiring the industry to reform so it is better prepared to produce fuel-efficient vehicles, while still using the current auto industry workforce. He also said a plan must include protection for taxpayers.

The House of Representatives is also working on a bailout plan for the automobile industry, according to Jerilyn Goodman, press secretary for Rep. Tammy Baldwin, D-Wis.

Goodman said in an e-mail that Baldwin supports legislation to permit some of the Wall Street bailout plan to be given to the auto industry as an emergency loan.

Congress already approved a loan of $25 billion to help the creation of more fuel-efficient cars, but the amount was set aside until both Congress and automakers work out a deal to finalize conditions and terms on that loan. Baldwin wants to give automakers a bridge loan now to ensure the continuation of short-term operations, according to Goodman.

“The American auto industry is facing unprecedented challenges, and millions of jobs, many here in Wisconsin, hang in the balance,” Goodman said.

Kohl does not expect any action to be taken before January, saying in a statement that “while it is essential the Federal Government do everything in its power to help get the American economy moving again, it looks doubtful Congress will reach a consensus on a stimulus plan until it reconvenes in January.”

Baldwin said there needs to be a significant change in the Republican leadership’s position, or the legislation will not pass out of both houses of Congress this session.

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