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Three Auto State Senators “Said in a Statement”

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For an example of just how crappy the reporting on a potential auto bridge is, check out this NYT article. Its title announces "Republicans Divided on Aid to Automakers." Yet the part of the article that purportedly tells that story consists solely of statements of the four most invested Republican Senators on the issue.

Kit Bond (who co-sponsored past efforts with Carl Levin):

“I’m glad the Democratic leadership has embraced the principles of the Bond-Levin bill to hold auto companies accountable, protect taxpayers and save millions of American jobs as we head into the holiday season,” Mr. Bond said in a statement.

Bob Corker: 

“Based on the outline we’ve seen so far, we are disappointed,” Mr. Corker said in a statement. He reiterated his demands that the automakers make aggressive efforts to cut labor costs and reduce their overall debt obligations before receiving any aid.

“These are the same types of conditions a bankruptcy judge might require to ensure that these companies become viable and sustainable into the future,” Mr. Corker said. “And if they will agree to these terms, then we have something to talk about.”

Mitch McConnell:

“I look forward to reviewing the legislation being drafted to address the difficulties in our auto markets,” Mr. McConnell said in a statement. “As we consider this legislation, our first priority must be to protect the hard-earned money of the American taxpayer.”

And a gratuitous inclusion of Richard Shelby, though he apparently hasn’t issued any new statement, but somehow gets included, based on no apparently new reporting:

The senior Republican on the banking committee, Senator Richard C. Shelby of Alabama, has said he will oppose any taxpayer-financed bailout for the auto industry, and other fiscal hawks are likely to join him in opposing the measure.

This is what counts as reporting these days for the NYT. Three official statements probably gleaned from press releases, thereby letting those most invested in this debate stand in for those who will determine its outcome.

In spite of the fact that every single Republican listed (along with Carl Levin) is an auto state Senator of one sort or another, David Herszenhorn doesn’t apparently consider that information to be noteworthy (indeed, he attributes Shelby’s opposition to any bailout to fiscal conservatism, not anti-union ideology and home state self-interest). Read more →

Robert Ficano to Richard Shelby: Suck. On. This.

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Unless you’re from MI, you probably don’t know who Robert Ficano is. But as the Wayne County Executive, he’s one of the senior-most elected officials in the state (and a potential Democratic candidate for Governor in 2010). I guess he’s about had it with Richard Shelby’s bad-mouthing of American-brand SUVs, because Ficano has taken out radio ads in AL pressuring Shelby for being un-American in his opposition to the Big Two and a Half.

Congress wouldn’t turn its back on American veterans in need, yet that’s exactly what some Senators are about to do. In World War II, America faced its greatest challenge, three true blue American car companies stood up for our country in her hour of need: General Motors, Ford, and Chrysler were the arsenal of democracy that built the tanks, vehicles, and planes that helped our soldiers win.

We face a devastating economic crisis that threatens to destroy our American auto industry as Congress considers a loan package that will allow the car companies to stay in business, let us not forget the invaluable service they gave our nation.

One of every ten jobs in America is related to the US auto industry including thousands in Alabama. If GM, Ford, and Chrysler go out of business, millions of jobs would be lost. Southern suppliers that sell billions of dollars in parts to the auto companies would close. Call Senator Richard Shelby at 205-731-1384 and tell him to stand up for the car companies that still secure our freedom today. (Paid for by the Robert E. Ficano Committee, Wayne County, MI)

Apparently, Ficano started these ads during the first go-around with Congress; with the help of the Regional Chamber of Commerce in Wayne County, Ficano has expanded the ads to other states whose anti-union foreign automaker loving members of Congress want to bankrupt the American competition: in addition to Alabama, Tennesee and Kentucky (and DC). 

Sure, it’s probably not going to change many minds. But its time someone really started hitting Richard Shelby hard for his posturing on this–particularly since his beloved Japanese car companies’ sales slipped even more last month than Ford’s did (GM and Chrysler’s sales absolutely tanked, though).

The Ideological Battle Over the Auto Overhaul Heats Up

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I wanted to draw your attention to two statements about an auto bailout to show where this is going to go ideologically. First, Richard Shelby:

The financial straits that the Big Three find themselves is not the product of our current economic downturn, but instead is the legacy of the uncompetitive structure of its manufacturing and labor force. The financial situation facing the Big Three is not a national problem, but their problem. I do not support the use of U.S taxpayer dollars to reward the mismanagement of Detroit-based auto manufacturers in such a way that allows them to continue and compound their ongoing mistakes. [my emphasis]

Note his emphasis on "competitive" structures of doing business–and paying labor.

What Shelby doesn’t mention, of course, is that Alabama is a right to work state. Shelby also doesn’t mention that Alabama is home to Honda, Toyota, Hyundai, and Mercedes plants. Shelby also doesn’t reveal that many of the cars those manufacturers make in Alabama, without unions, are precisely the kind of behemoths critics attack Detroit for making–only these have foreign nameplates: M-Class SUV, GL-Class SUV (a new model), Pilot SUV, Santa Fe SUV, plus engines for Tacoma and Tundra pick-ups and Sequoia SUVs.

In other words, Shelby isn’t opposed to car companies that are stupidly committing and recommitting to SUVs. Rather, he’s just opposed to car companies that make SUVs with union labor.

Meanwhile, here’s Jennifer Granholm’s spin supporting a bailout.

Beyond the massive job loss, beyond the potential collapse of an entire economic sector, Congress and the Bush administration need to provide immediate assistance to the auto industry because America’s energy independence is a critical national need. And the U.S. auto industry is the sector to lead the way to that energy independence.

How? The car you drive will be the storage unit for your energy needs. Your home, your car, your appliances can all be powered through the advanced battery that will sit inside your plug-in electric vehicle. Today, most batteries come from Asia, and much of the oil comes from the Middle East. It is a national-security, energy-security imperative to produce advanced batteries and next-generation biofuels here at home.

[snip]

Supporting the automotive industry through the current crisis and steering a clear transition to a low-carbon future will create millions of middle-class jobs that are vital to a strong economy while reinvigorating American technological superiority.

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