Letter To John McCain, United States Senator

Letter

Congressman Gary Peters, whose district is home to Chrysler Group LLC World Headquarters in Southeast Michigan, today challenged Senator John McCain's prediction that Chrysler will soon fail and that preventing the collapse of American auto companies was a mistake. As reported in the Detroit News this week, while serving as grand marshal of a NASCAR race in Arizona, Senator McCain said "anybody believes that Chrysler is going to survive, I'd like to meet them."

Congressman Peters today sent Senator McCain a letter accepting his offer, saying "[I] will meet with you at your convenience to discuss the future of Chrysler and the contribution they make to our nation's economy. Better yet, I'd be more than happy to bring you to my district to meet with thousands of Americans who are working hard every day to design new and exciting vehicles and ensure the continued future of the American automobile industry…. Hopefully then you might choose to be a partner in the continued success of an industry critically important to our country."

Upon sending the letter, Congressman Peters also said, "Senator McCain's campaign slogan was ‘Country First'. For some reason, that doesn't seem to extend to supporting American industries. The worst part is not just that Senator McCain is vocally predicting failure for a great American company that supports millions of jobs across the country--it's that you get the sense he's rooting for it."

At the NASCAR race, Senator McCain said he believed the government should not have extended financing to Chrysler and General Motors, despite supporting auto industry aid while campaigning for president, and despite the fact that a lack of government financing would likely have led to liquidation of the companies and the loss of millions of jobs at research facilities, auto plants, parts suppliers, dealerships and other impacted businesses in every state in the country. Senator McCain also falsely asserted that the United Auto Workers refused to renegotiate existing contracts, despite the fact that the UAW did just that in order to keep GM and Chrysler solvent, bringing the companies' labor costs in line with foreign automakers'.

Click here to view a signed copy of Congressman Peters' letter to Senator McCain.

Below is the text of the letter:

November 17, 2009

Senator John McCain
241 Russell Senate Office Building
Washington, DC 20510

Dear Senator McCain,

As the representative of Michigan's 9th Congressional District, I have the honor and privilege of representing the Chrysler Group LLC corporate headquarters in Auburn Hills. I read with great interest recent comments you made concerning the future of Chrysler while serving as the grand marshal of at the NASCAR Sprint Cup series race at the Phoenix International Raceway. In your comments you questioned the wisdom of providing financing to General Motors and Chrysler to help them reorganize and avoid liquidation, claimed that workers failed to make concessions, and expressed doubt about Chrysler's future.

Last year, automobile manufacturers sold three million fewer cars and trucks in the United States then they did the year before. This stunning eighteen percent drop in sales was caused by the global financial crisis, and affected automakers from Europe, Asia, and the United States. When President Bush made the decision to provide initial, short term financing to GM and Chrysler he did so because he understood that with the credit markets locked up there was simply no source of private financing for a bankruptcy reorganization, and that the only available option was the liquidation of both companies. Not only would this have directly and immediately resulted in hundreds of thousands of Americans losing their jobs, but the effects would have reverberated through our entire economy and made the current recession much worse and much more painful.

When President Obama decided to provide further financing to GM and Chrysler, he conditioned that support on the two companies being able to provide a plan to the Treasury Department that established a path to viability. Complying with this requirement meant that GM and Chrysler had to obtain significant concessions from all stakeholders, including the United Auto Workers. The new agreements approved by workers will result in significant sacrifices with respect to pay and promised benefits, and when fully implemented will erase the gap in labor costs between GM and Chrysler and the non-union, foreign automakers operating in the US.

Because of the sacrifices made by the UAW and other key stakeholders, the American automobile industry is well positioned to emerge from the current economic crisis stronger and more globally competitive than when we entered it. While no one can predict the future, I believe that Chrysler has an opportunity to not only survive in the years to come, but to offer innovative new vehicles here in the United States and increase export opportunities overseas for its existing world class products like the iconic Jeep.

In response to your statement, "anybody believes that Chrysler is going to survive, I'd like to meet them," I would like to take you up on your offer and will meet with you at your convenience to discuss the future of Chrysler and the contribution they make to our nation's economy. Better yet, I'd be more than happy to bring you to my district to meet with thousands of Americans who are working hard everyday to design new and exciting vehicles and ensure the continued future of the American automobile industry. I think that after seeing first hand all the great things that are happening at Chrysler and learning more about the business plan they released earlier this month, you may find yourself more optimistic. Hopefully then you might choose to be a partner in the continued success of an industry critically important to our country.

Sincerely,

Gary C. Peters
Member of Congress

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