Original Press Release
NAM President Urges Administration to Use TARP Funds For Auto Companies
Press release date: December 12, 2008
Engler Urges Bush Administration to Act Quickly
WASHINGTON, D.C., December 12, 2008 - In response to the Senate's failure last night to approve financial assistance for domestic automakers, and the White House statement this morning that it is considering using funds from the Troubled Asset Relief Program (TARP) for this purpose, the National Association of Manufacturers President and Chief Executive Officer John Engler issued the following statement:
Manufacturers are greatly disappointed by the Senate's failure last night to approve funding for the domestic automakers that has already been approved by the House. The nation is in recession. Our economy is in dire condition and vulnerable to more dramatic shocks if we allow one or more of the Detroit-based auto companies to fail. In fact, according to some estimates, the collapse of just one of the domestic automakers could lead to a rise in unemployment by 3.0 to 8.9 percent in the nine hardest hit states. Every state would be affected and the supply chain that serves all automakers - domestic and foreign-based - would be damaged. Increased government payments and tax losses could exceed $150 billion in the first three years. We simply cannot permit this to happen.
This morning the White House indicated it may be willing to transfer emergency funds to the auto companies from the TARP. We fully support this action, applaud the White House for considering this necessary step, and encourage the Administration to move quickly.
The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM's award-winning web site at www.nam.org for more information about manufacturing and the economy.