NEW ORLEANS (AP) — Louisiana’s Republican senator came out in opposition to a $25 billion federal bailout for domestic automakers, saying it would only delay the need for the Big Three to restructure their operations to become more competitive.
U.S. Sen. David Vitter said that if the package is approved, Congress would find itself considering more money for the industry within six months.
“Of course, no one wants to see these storied companies fail,” Vitter said. “But this $25 billion will actually guarantee their demise.”
Congress is tangling with the idea of the emergency package for General Motors Corp., Ford Motor Co. and Chrysler LLC.
In Louisiana, only about 700 GM jobs remain from a one-time payroll of 3,000 at the company’s Shreveport assembly plant. Even before the recent financial meltdown, that plant has been devastated by collapsing demand for pickup trucks and GM’s Hummer brand because of skyrocketing gasoline prices earlier in the year.
U.S. Sen. Mary Landrieu, a Democrat, is reviewing the proposal and deciding her stand, said spokeswoman Stephanie Allen.
“She is very concerned about jobs all over the country and in Louisiana, particularly at the GM plant in Shreveport,” Allen said.
Allen said Landrieu was concerned if that the bailout is approved, it would have “taxpayer protection.”
Both Vitter and Landrieu voted against the $700 billion bailout of the financial industry in late September.
During an appearance before House Financial Services Committee, GM CEO Rick Wagoner said he anticipated that his company would qualify for about $10 billion to $12 billion of the money if the package is approved.
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