Update on Congressional Efforts to Assist the Auto Industry

Press Release

This week, Congress reconvened in order to determine how best to provide assistance to the struggling automobile industry. On Wednesday night, I voted for and the House of Representatives passed the Auto Industry Financing and Restructuring Act which would provide bridge loans to the "Big Three" American car manufacturers which are on the brink of collapse.
Everyone is understandably frustrated with the state of the economy and an industry nearing collapse due to poor management and performance. But the reality is that one-in-ten American jobs are connected to the U.S. auto industry, and letting this enormous manufacturing base collapse would not only risk those good-paying jobs, but it would jeopardize our national security and exacerbate the difficulties facing our economy.

The bridge loans provided under our package came with significant taxpayer protections and accountability to the American people. The auto industry has a choice - restructure and modernize or fail. The auto industry's success will require everyone to participate in the process - executives, employees, unions, dealers, suppliers, creditors and shareholders must all make sacrifices and reform to save the industry.

Unfortunately, the bill has stalled in the Senate and most analysts predict that - unless the President immediately directs Secretary Paulson to explore other short-term financial assistance options - the auto companies will have to wait until President-elect Obama and the 111th Congress are sworn in to receive assistance. Senate Republicans' refusal to support the bipartisan legislation passed by the House and negotiated in good faith with the White House, the Senate and the automakers is irresponsible, especially within the current economic climate.

The consequences of the Senate Republicans' failure to act could be devastating to our economy and cost hundreds of thousands of American jobs. I also fear that if the auto companies fail that the ripple effects could be particularly harmful for our state (home to the Saturn manufacturing plant) and the 9th District where GMAC employs a number of Memphians in their distribution center. In addition to leaving hundreds, if not thousands, of our fellow citizens jobless, this increases the burden on the state budget by increasing unemployment claims and reducing tax revenue.

Yesterday, I was honored to learn that - in just my second term - I was elected by acclamation by my Democratic colleagues to serve in a leadership position during the 111th Congress as one of twelve Regional Whips. I sincerely appreciate the opportunity to work with the Majority Whip, Congressman James Clyburn (SC-06), to enact the agenda of our Congressional leaders and that of the new Presidential Administration. President-elect Obama and the Democrats ran on an ambitious platform for change in the fall, and I look forward to working with House Leadership and the Obama Administration to address the challenges America is now facing, including the economy, jobs, health care, energy, and bringing our troops home from Iraq. I thank my colleagues in the Caucus for entrusting me with this responsibility, and I am grateful for the chance to serve as Regional Whip.

Of my election, Congressman Clyburn remarked, "I'm pleased to have Congressman Cohen join my whip team for the 111th Congress. Congressman Cohen will play a key role in helping me bring members from the southern region together to support legislation that will create jobs, strengthen our economy and establish our energy independence. With his help we can bring lawmakers together and move the country in a new direction."

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