Car Markers Take A Conciliatory Tone On Capitol Hill
Thursday, December 04, 2008SUSIE GHARIB: Detroit's big three auto makers told Congress today they're open to more concessions in order to get badly needed government loans. The chief executives of General Motors, Ford and Chrysler said they're willing to accept a Federal oversight board to monitor their operations if they get the money. The three CEO's, along with the head of the United Auto Workers union, were back on Capitol Hill today, trying to convince lawmakers to lend them $34 billion. But as Stephanie Dhue reports, their tone was different from their last visit to Washington.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Lesson learned: that's the message from the Detroit auto makers' CEOs. From driving to the hearing to slashing their pay, the executives like GM's Rick Wagoner returned to Capitol Hill humbled.
RICHARD WAGONER, CEO, GENERAL MOTORS: We're here today because we made mistakes, which we're learning from, because some forces beyond our control have pushed us to the brink and most importantly, because saving General Motors and all this company represents is a job worth doing.
DHUE: Law makers are skeptical. They don't want to throw good money after bad and they do want accountability so taxpayers get repaid. New York's Charles Schumer says bondholders, dealerships and lenders need to be part of any restructuring. He suggests an auto czar to lead the effort.
SEN. CHARLES SCHUMER, (D) NEW YORK: You let this president or the next one -- may have to be this one -- pick somebody, he calls all the major players into the room, probably Treasury secretary and says you all have to make concessions.
DHUE: Moody's economist Mark Zandi told law makers auto makers will ultimately need $75 to $125 billion over the next two years to stay out of bankruptcy. Banking Committee Chairman Chris Dodd says the Federal Reserve and Treasury already have a green light to get cash to auto makers if Congress doesn't.
SEN. CHRIS DODD, BANKING COMMITTEE CHAIRMAN: I want to be clear that Congress has already given the Bush administration the authority to stabilize this industry.
DHUE: But Commerce Secretary Carlos Gutierrez says it's important for Congress to make the decisions.
CARLOS GUTIERREZ, U.S. COMMERCE SECRETARY: This isn't a yes or no answer and it's not going to happen in three weeks. It's going to over a period of time. And there needs to be a plan laid out for that monitoring. There's been a lot of discussion about oversight, but this is going to filter into the next administration.
DHUE: Today's Senate hearing was a brainstorming session of sorts, with law makers considering ideas to keep the industry afloat without writing a blank check. More ideas are likely to come tomorrow, when the CEO's go before the House Financial Services Committee. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
