FOR IMMEDIATE RELEASE
December 11, 2008

CONTACT:
   Brent Littlefield
(703)836-8602

ACU: It's Time to Draw a Line on Bailouts

ALEXANDRIA, VA - The American Conservative Union has issued a letter to Members of Congress calling for the line to be drawn on federal government bailouts.

In the letter, which was distributed to Members of the House and Senate late yesterday, the ACU stated, "It is time to draw a line in the sand.  It is time to stop throwing good money after bad.  It is time to stop writing blank checks from the taxpayer to failing companies."

The letter, sent by ACU's Director of Government Relations Larry Hart, added, "Rather than deal with the real issues, this legislation kicks the can down the road to the next Congress and the Obama Administration."

The ACU is aggressively pushing the Senate to reject the current auto bailout language that has passed the House.

The facts are U.S. automakers produce less than 50% of the vehicles Americans now buy.  Statistics from the Center of Automotive Research document the density of vehicle assembly line manufacturing has shifted as foreign manufactures assemble more and more vehicles right here in the U.S.  The Wall Street Journal has noted foreign owned manufacturers now employ 113,000 American citizens as compared to 239,000 who are employed by U.S. owned manufactures.  

"Americans have already rejected with a majority of their purchases the vehicles currently produced by the Detroit Big Three.  Now some politicians and Detroit labor bosses are asking the American people to buy into vehicles they have already rejected.  While little blame can be placed on the small business dealers or suppliers who are unfortunately affected, it is wrong to ask the government to pick winners and losers in the game after it has already been played," stated Brent Littlefield, a Communications Director for the ACU.

Multiple studies note the Detroit Big Three's labor agreements have played an ongoing multi-year role in the economic troubles of the automakers.   When wages and benefits are added together, the Detroit Big Three's actual hourly labor costs are upwards of 65% higher than those of their foreign owned competitors, according to the numbers in a recent Wall Street Journal report.

Dennis Whitfield, Executive Vice President of the ACU and a former Deputy Secretary of Labor, notes this disparity is untenable.   "It appears these companies bought peace from the cannibals just to eat them last," said Mr. Whitfield, "Now that they have chewed through the fat and are about to hit bone the Detroit Three are taking advantage of the economic crisis to cry out in pain and ask the American people to bandage the wounds they created."

The ACU further points to the fact that bankruptcy laws are already in place to help companies re-structure, further decreasing the need for government bailout. 

"The Tribune Company filed for bankruptcy on Monday and we did not hear a cry from labor leaders or Washington liberals that we need to bail them out, or help save the Los Angeles Times, the Chicago Tribune, their local television stations or sports franchises," said David A. Keene, Chairman of the ACU, "These entities employ people.  In fact, the Tribune Company website states they are America's largest employee-owned media company.   Yet the Detroit Big Three and other industries are lining up for bailouts.  It is time to draw a line."

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The American Conservative Union (ACU) is the recognized authority on rating the conservative votes in Congress through its annual congressional ratings.  The American Conservative Union Foundation is the host of CPAC, taking place again next year from Feb. 26-28, 2009 in Washington, DC.  The ACU is the nation's oldest and largest conservative policy organization.



 

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