Michigan Governor Jennifer Granholm Comments On The Bailout Plan
Monday, December 08, 2008SUZANNE PRATT: Joining me now to discuss the Detroit three bailout is Michigan Governor Jennifer Granholm. Governor Granholm, welcome back to the program.
GOV. JENNIFER GRANHOLM, (D) MICHIGAN: Thank you Suzanne.
PRATT: So let me start off by asking you, are you satisfied with the plan as it seems to be coming together this evening?
GRANHOLM: I'm very encouraged by the bill that was sent over to the president. There's probably some back and forth that still has to happen but the bottom line is that Congress, the president, the incoming president, all realize that this industry is too important to America to allow it to fail. So the fact that there is a bridge loan that gets us into the next administration and the requirement that the auto industry restructure to ensure fuel efficient vehicles and electric vehicles, that's I think all good news.
PRATT: Would you like to see a change in leadership as so many people are now calling for, in particular for GM's Rick Wagoner to be relieved of his post?
GRANHOLM: You know, this is much bigger than one person. I hate for one person to be scapegoated. The bottom line is does General Motors have a plan and they do have a plan. They are in the middle of restructuring. They have got some tremendous product, as they say, in the pipeline, some great models that will be coming out including the Chevy Volt, the all electric vehicle. I drive in a Chevy Tahoe which is the green car of the year. They got the Motor Trend car of the year. They've got the Chevy Malibu which is the number one JD Powers quality car. I mean they've got some really great products right now and in the pipeline. So I think I'm excited for America that these companies will be able to lead us really to freedom from our dependence on Middle Eastern oil which is exactly what Congress would like to see.
PRATT: Do you think though that a sacrificial lamb is needed because of the PR problem that the auto makers seem to have right now? Do you think that would solve a lot of problems in terms of getting people feeling a little bit different about auto makers?
GRANHOLM: Well, what I think people need to see is that this auto industry is going to lead us to a green, re-branded auto industry, that the auto industry itself, the three companies are serious about taking us into this new future, into this vision of a nation that's independent of foreign oil. I think these are what the plans that they will be required to show. And it's certainly what they were on task to do. That's what I think people need to see are the cars.
PRATT: What is your assessment of the way that the auto makers have been treated by congressional law makers?
GRANHOLM: Well, let's just say that I believe that it's important to show a plan in exchange for a loan that the tax payers would have to come up with. But I also think it's important to show a plan for the financial industry. There has been an incredible double standard. I understand that the auto industry is certainly the victim of bad timing in terms of having come at a point where everybody is bailout weary. But certainly these tax payer dollars are just as precious when they are applied to the financial industry. The auto industry is seeking only a fraction of what was given to the industry, the financial industry and it's a loan. And that loan is going to ensure that we have a manufacturing infrastructure and three million jobs are protected in this nation all across the country, not just in Wall Street but in small communities all over. So the bottom line is I think it is important to show a plan, but I think it's important to hold the financial industry's feet to the fire too.
PRATT: We have just a few seconds left. You've said that Americans, you don't think, will buy cars from companies that are in bankruptcy. Why do you think the consumers will buy cars from auto makers that have been in dire financial straits? Do you think it will be any different under those circumstances?
GRANHOLM: Yeah, I do. I mean, I think that bankruptcy changes the ballgame. I think that if there's a commitment by the American government to seeing these companies succeed rather than a commitment to bankruptcy, that makes all the difference in the world for when a consumer puts down thousands of dollars on the biggest consumer purchase they make other than their home. Eighty percent of consumers said they won't buy from a bankrupt company.
PRATT: OK. I think we have to leave it there. Thank you for joining us again.
GRANHOLM: All right Suzanne, thanks for having me on.
PRATT: Our guest this evening, Michigan Governor Jennifer Granholm.
