Dec 3, 2008

Experts, Politicians Side With Automakers

The American automobile industry is not only too big to fail; it is much too important to fail. That is the word from both a Pennsylvania congressman and a think-tank expert. Faced with a troubled economy and continued slack in demand, General Motors Corp., Ford Motor Co. and Chrysler LLC are currently seeking billions of dollars in loans from the federal government to get them over this rough patch.

Kent Hughes, director of Science, Technology, America and the Global Economy (STAGE) at the Woodrow Wilson Center, argues that Washington needs to act today with federal investments, loans and loan guarantees to rescue the domestic auto industry. In short order, he said, Washington must demand a business plan from the entire auto industry and key experts that points the way to an economically viable future.

“Washington must develop its own strategy to deal with a painful transition that will affect workers, small businesses, and entire communities,” Hughes said. “We did it for defense industries after the Cold War, and we need to do it today for businesses that are an integral part of the defense industrial base.”