U.S. Senators: Auto Bailout No-Go for Now

The proposed $14 billion auto bailout, which passed the House, was defeated in a procedural vote by the U.S. Senate last night. However, both Indiana Senators, Richard Lugar (R) and Evan Bayh (D), voted in favor of allowing a vote on the measure.

Lugar says:

“A new Congress will be in place in a little more than three weeks and will be able to again consider options. In the meanwhile, the Administration has the funding and ability to extend credit to the car companies as they have already done in the financial sector,” Lugar said.

“In 1979, at the brink of collapse, the Chrysler Corporation came to Congress asking for aid. Senator Paul Tsongas and I worked more than six months to forge a deal based on tough love: assistance would be provided, but only on condition of substantial compromise by all parties,” Lugar said.
 

Auto Bailout Passes House

The auto bailout for the Big 3 (Chrysler, Ford, GM), worth $14 billion of assistance, passed the U.S. House of Representatives by a vote of 237-170. Here’s how Indiana’s Congressmen voted:

For
Andre Carson (D)
Joe Donnelly (D)
Brad Ellsworth (D)
Baron Hill (D)
Pete Visclosky (D)
Steve Buyer (R)
Mark Souder (R)

Against
Dan Burton (R)
Mike Pence (R)

The bill now heads to the Senate. Indiana’s junior Senator Evan Bayh (D) has this to say:

“We’re faced with trying to choose the best among unpalatable alternatives. Nobody wanted to give money to the banks or to the insurance companies, and nobody wants to give money to the auto industry. I don’t. But if the alternative is losing hundreds of thousands of jobs and having automakers, dealerships, part suppliers, and other retailers in local communities go down, we have to make a hard choice here.

“People think the economy is bad now, but if we let all these companies go belly up, and all those folks get laid off, I’m afraid it would be much worse.

“Indiana has a huge stake in this debate. If the big auto companies go down and thousands of jobs are lost, it’s going to hit us a lot harder than almost any place else in the country."