Dec. 3, 2008 – The plight of the U.S. automakers could be left to Congress.  Not the best scenario for the American ideals of free enterprise and capitalism, but the big three automakers are now in the need of a bailout, which appears to be the only option for survival.

But a bailout won’t be easy.  President Bush and Democratic Party leaders are in a stalemate over what should be done.  Republicans believe the automakers should file bankruptcy and reorganize, while Democrats think tax dollars can should only be used as bridge loans while companies reorganize under bankruptcy laws, cut costs and re-tool plants to build more fuel-efficient cars.

But lofty ideals require time the automakers don’t have.

One Black lawmaker from the Motor City, Rep. John Conyers (D-Mich.), weighed in following the presentations of options by the automakers that appeared to be filled with gloom and doom.

Conyers wants the new administration to elevate United Auto Workers President Ron Gettelfinger into the position of “auto czar.”   

“Over the last month, there has been much discussion about the need for a strong central figure to oversee the dramatic changes being undertaken by the auto industry.  It is my belief that a Cabinet-level ‘auto czar’ would provide this type of leadership and help President Obama successfully coordinate his administration’s efforts on behalf of the industry,” Conyers said.

I’m not sure a czar is what’s needed, but it’s clear the industry needs some un-divided attention to get back in gear. As for czars, they usually make headlines, and not policy, so how do they really help?

“If the Congress and auto industry strike a ‘grand bargain’ aimed at improving the industry’s efficiency and innovative capacity, America’s public and private sectors will have to work together on a variety of fronts.  The complexity inherent in reforming firms with extensive and interconnected labor, legal, and financial agreements will most certainly be daunting,” Conyers contends.

Speaker of the House Rep. Nancy Pelosi agrees with the severity of the issues facing the industry, but she told reporters on Tuesday, “I think it’s pretty clear that bankruptcy is not an option,”  and that she may call for another lame-duck session to deal with the crisis.

 “I believe that an intervention will happen, either legislatively or by the administration,” Pelosi said.

The automakers made their case to Congress while in Washington.  General Motors Corp. asked for $18 billion along with $12 billion in loans and a $6 billion line of credit.  Chrysler asked for $7 billion before the end of 2008 and Ford Motor Company  requested a  $9 billion line of credit.

Michigan Sen. Carl Levin (D)  said he thinks things can come together to get a deal on paper for the automakers.  “If this thing is going to happen next week, it’s going to happen with the support and assistance of the current president and the president-elect,” Levin said.

With the number of jobs on the line throughout the United States and the number of small businesses depending on the successes of the automotive industry, Congress will have to do something.  We’ll just have to wait and see what they decide to do.

Do you think tax dollars should be used to help the struggling automakers?