Michigan Governor Says Detroit 3 Needs Federal Help, and Fast
 Jennifer M. Granholm Governor of Michigan |
By Jennifer M. Granholm
Governor of Michigan
and
Richard E. Blouse
CEO Detroit Regional Chamber
As part of a massive overhaul of the fuel efficiency regulations, the federal government agreed to provide guaranteed, low-interest loans of up to $25 billion to the domestic automotive companies.
These funds, which must be paid back with interest, will help General Motors, Chrysler and Ford retool and modernize manufacturing facilities and operations to meet the higher fuel economy standards and compete in the rapidly changing global and domestic marketplaces.
These funds, which must be paid back with interest, will help General Motors, Chrysler and Ford retool and modernize manufacturing facilities and operations to meet the higher fuel economy standards and compete in the rapidly changing global and domestic marketplaces.
Congress authorized the money last year, and the funds were appropriated this year. The U.S. Department of Energy is now in charge of disbursing the loans to the American auto companies and suppliers.
Officials within the Energy Department are indicating it may take up to 18 months before the loans are available.
This is too long for an industry that finds itself in uncharted waters.
It is an unprecedented time considering the American autos are facing a faltering global economy, an acute credit crunch, intense worldwide competition, shifting consumer demand, and expanded government regulations – all at the same time. Waiting to get much-needed resources to an industry where all of these forces are putting considerable pressure on severely strained companies is not an option.
The automotive industry, of which the American companies comprise a significant portion of the market, is an integral part of the nation’s economy. Over 13 million auto-related jobs are found throughout the country in every state. Delaying the federal loans will jeopardize countless workers across the nation.
The U.S. has a long and proud heritage as the birthplace of the automobile. Today, we remain the global brain center of the industry.
Losing this designation would have profound repercussions for the nation’s ability to continue to be the driving force behind high-tech manufacturing and advanced research and development.
These areas provide a lot of promise for job creation and business investment. This will be undermined if the federally guaranteed loans are not distributed in a timely manner or if additional funds are not made available to automakers while the Energy Department finalizes these loans.
In addition to being a national economic imperative, preserving a strong manufacturing base in the U.S. is also a national security issue.
American manufacturing was the “arsenal of democracy” in the last century.
The industry, led by the domestic auto companies, remains a central part of the nation’s ability to protect itself and its interests today. Prolonging the time it takes to get the loans to the domestic automakers and suppliers will undercut an already stressed American manufacturing sector and put the country at risk in an uncertain world.
Finally, the federally guaranteed loans will assist the nation’s efforts with environmental sustainability and energy independence. The funds will help the American auto companies produce greener vehicles that use less fuel.
It is time for the Department of Energy to expedite the process for disbursing the federally guaranteed loans to U.S. automakers. Time is of the essence, because delaying will cause irreparable harm to the nation and workers.
