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For Release: Tuesday, October 28, 2008
McCain "out of touch and uninformed" about U.S. auto industry, says UAW
Republican presidential candidate John McCain is "out of touch and uninformed about the U.S. auto industry," UAW President Ron Gettelfinger said today.
Gettelfinger was responding to comments made Monday by McCain economic advisor Carly Fiorina during a visit to the Detroit area.
"The auto industry," Fiorina said, "cannot be saved from its own bad bets," adding that government assistance to industry "should not take away the fundamentals of risk-taking."
"Blaming auto companies at a time when auto loans and auto sales have dried up due to the worldwide credit crisis and a severe economic downturn reveals a shocking level of ignorance about the true state of our industry and the real problems that face American workers and American companies," said Gettelfinger.
"John McCain's key economic advisor certainly knows how to shelter herself from risk," added Gettelfinger. Fiorina left Hewlett Packard in 2005 with a $21 million severance package; she was forced out as CEO after a sharp decline in the company's stock price and heavy job losses.
"Apparently John McCain thinks it's OK for a CEO to get a golden parachute after failing her shareholders and her employees," said Gettelfinger. "But he doesn't believe American workers and retirees deserve protection during a time of economic crisis.
"The contrast between John McCain and Barack Obama could not be clearer. Instead of hurling criticism from the sidelines, Obama has been a leader in the U.S. Senate in seeking support for the auto industry and American manufacturing. He's shown a steady hand during the current crisis – and his forward-looking energy and economic policies will help create a sustainable future for U.S. industries and U.S. workers."
The jobs of workers at thousands of auto supply companies, auto dealerships, engineering and research firms and other auto-related businesses are dependent of the future of auto manufacturers, said Gettelfinger.
In addition, Gettelfinger said, more than a million retirees and their dependents receive pension and health care payments from domestic automakers. If any of the automakers were unable to meet their obligations to retirees, it would impose severe financial burdens on the federal pension guarantee program and federal health care programs.
"Strategic support for a key U.S. manufacturing industry is a smart move for U.S. taxpayers," said Gettelfinger. "The alternative is lost sales and revenue for thousands of business owners, lost jobs for workers, and higher costs and lower tax revenues at all levels of government."
The $25 billion in low-cost loans recently approved to accelerate introduction of advanced-technology vehicles "is an excellent start on a long-term effort to retool our industry for fuel efficiency," said Gettelfinger. "But it is not an adequate response to the credit and economic crises that are undermining the viability of an industry that accounted for 3 percent of the U.S. gross domestic product (GDP) last year."
"The federal government needs to step forward now to help the auto industry meet these challenges," said Gettelfinger. "The Treasury Department and Federal Reserve should use the tools at their disposal to provide urgently needed liquidity for auto manufacturers, dealers and consumers. Congress should also provide additional assistance to help the auto companies weather the economic downturn that has severely depressed auto sales. Taken together, these actions by the federal government can help the auto industry and its workers and retirees, and stimulate our overall economy during this critical period.
"John McCain's failure to support these efforts shows that he simply doesn't understand what's wrong with the American economy - or how to make it right."