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Posted: 5:11 PM Nov 19, 2008
Capito Question Auto Executives
WASHINGTON, D.C. Rep. Shelley Moore Capito (R-WV) had pointed questions for CEOs of Detroit’s “Big Three” automakers Wednesday at a House Financial Services Committee Hearing.
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Rep. Shelley Moore Capito (R-WV) had pointed questions for CEOs of Detroit’s “Big Three” automakers Wednesday at a House Financial Services Committee Hearing about the request by auto-manufacturers for $25 billion in federal support.
Referencing the $700-billion financial rescue plan and a previously approved $25 billion loan program for automakers, Capito sought clarification from automotive executives about the justification for their current request.
“We’ve already had one bailout bill for the financial sector with a dollar figure that was essentially pulled out of thin air,” says Capito, reflecting her frustration over news reports indicating that Department of Treasury officials chose the $700 billion figure for the previously-passed financial rescue package simply because it was “a really large number.”
She continues, “Now we have yet another request for billions in taxpayer dollars and I think it’s important that we understand why these numbers were chosen and where this funding would go, particularly when we’ve already authorized a $25-billion loan for automakers through a Department of Energy program.”
Capito also challenged automotive executives about why their businesses were deserving of federal funding, when so many other small businesses and their employees don’t have the luxury of such a bailout.
“How do we differentiate between those who should be bailed out and those who shouldn’t,” says Capito after the hearing. “When we’ve faced job losses in West Virginia, and when manufacturers have shut down, there was no bailout for them.
“There’s no doubt that American automakers are facing enormous economic challenges, and we must work to protect our devoted auto-workers, but we’ve got to see real innovation that will enable the Big Three to compete.”
Wednesday’s hearing capped off two days of testimony by automotive executives, labor representatives and members of the Michigan congressional delegation in hearings in both the U.S. Senate and the House of Representatives.
