LANSING - Governor Jennifer M. Granholm today issued the following statement urging the White House to use executive authority to help U.S. auto companies with a bridge loan:
"I thank President Bush for signaling that he will use his executive authority to come to the rescue of millions of American jobs."
Earlier today, the White House issued a statement calling the failure of Congress to pass legislation to assist and restructure the troubled automakers "disappointing" and said it will consider other options if necessary - including use of the Troubled Asset Relief Program (TARP) - to prevent a collapse of troubled automakers.
Granholm announced that she has sent a letter to the president, Treasury Secretary Henry Paulson, and Federal Reserve Chairman Ben Bernanke extending her thanks for their recent efforts to develop compromise legislation that would extend emergency bridge loans to U.S. automakers.
In her letter, the governor wrote that while it is disappointing that the legislation failed to gather sufficient support in the Senate, she is grateful for their consideration in making loans available to the ailing automakers by using funds from the TARP. She urged them to act immediately to prevent further job loss and deterioration of American financial markets.
"As you know, both General Motors and Chrysler could fall into bankruptcy before the end of this year unless financial assistance is forthcoming," Granholm wrote. "If loans are not made to these companies immediately, up to three million American jobs could be lost in the first year alone. The auto industry is the backbone of American manufacturing, and the ripple effects of bankruptcy would touch all sectors of the economy. It is imperative that the administration not allow collapse of a core industry that directly employs or supports millions of jobs across the United States."
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