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MinnPost - Auto Bailout Divides Minnesota's Congressional Delegation

News Article

Date: Nov. 20, 2008
Location: Washington, DC
Issues: Transportation


MinnPost - Auto Bailout Divides Minnesota's Congressional Delegation

The question in Congress this week is whether the auto industry should get a bailout from the government, but lawmakers — including Minnesota's congressional delegation — are sharply divided over how to do it.

Automakers say that they're suffering under a short-term liquidity crisis prompted by the credit crunch, high gas prices and a downturn in consumer purchases. It's a problem that, if left untreated, could be disastrous for the U.S. auto industry, they say.

Some Democrats believe that the best way to help the ailing industry get over the hump is to carve out about $25 billion in loans from the $700 billion economic recovery package passed earlier this year.

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Meanwhile, Keith Ellison believes there's nothing wrong with authorizing a separate $25 billion for the industry outside the $700 billion bailout.

"I stand solidly behind the auto workers in their effort to keep their jobs," Ellison said.

But attached to any money given to the auto industry must be a plan for greater fuel efficiency, global competitiveness and a repayment plan.

"We need to get to the root of the problem and that is an uncompetitive product — not those who assemble the product," Ellison said.

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