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Lawmakers remain skeptical of a proposed “Big Three” bailout package, despite warnings from Ford (F) that thousands of jobs nationwide could be at stake.
This week, the Detroit Free Press cited an internal analysis by Ford predicting that half of all U.S. states could lose at least 3,000 jobs each if the company is allowed to collapse, with five states at risk of losing more than 10,000 jobs. The company employs 245,000 nationwide and indirectly sustains others like auto dealers and parts manufacturers.
Despite the dire warnings however, many lawmakers are unconvinced that government bailout money would do much good in the long run. The White House has also resisted an auto bailout package, questioning the long-term viability of the companies.
"Labor costs, enormous pension and healthcare liabilities and inefficient production have contributed to the current crisis in the auto industry," said Senator Mike Enzi, a Republican member of the Banking Committee. Enzi noted that the Big Three are blaming the economy for their problems "when other car companies are staying afloat."
Committee chairman Christopher Dodd, who is considered a supporter of the industry, was quoted by the Associated Press as telling executives they had been "devoid of vision" as they presented their case in Washington on Tuesday.
Lawmakers skeptical of automaker bailout
Lawmakers remain skeptical of a proposed “Big Three” bailout package, despite warnings from Ford (F) that thousands of jobs nationwide could be at stake. This week, the Detroit Free Press cited an internal analysis by Ford predicting that half of all U.S. states could lose at least 3,000 jobs each if the company is allowed to collapse, with five states at risk of losing more than 10,000 jobs. The company employs 245,000 nationwide and indirectly sustains others like auto dealers and parts manufacturers.
Despite the dire warnings however, many lawmakers are unconvinced that government bailout money would do much good in the long run. The White House has also resisted an auto bailout package, questioning the long-term viability of the companies.
"Labor costs, enormous pension and healthcare liabilities and inefficient production have contributed to the current crisis in the auto industry," said Senator Mike Enzi, a Republican member of the Banking Committee. Enzi noted that the Big Three are blaming the economy for their problems "when other car companies are staying afloat."
Committee chairman Christopher Dodd, who is considered a supporter of the industry, was quoted by the Associated Press as telling executives they had been "devoid of vision" as they presented their case in Washington on Tuesday.
