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Rep. Wilson expects Big 3 aid approval
Photo
Charlie Wilson
The House Financial Services Committee will discuss the automakers’ proposals Friday.
BOARDMAN — U.S. Rep. Charlie Wilson said he expects the heads of the Big Three automakers to be better prepared to address Congress than they were last month as to the need for federal assistance.
“The lack of a plan the last time they were there was disheartening,” Wilson, of St. Clairsville, D-6th, told The Vindicator on Wednesday before speaking at a Regional Chamber luncheon at Mr. Anthony’s. “This time I think they’ll present it in a better way.”
Wilson, whose district includes all of Columbiana County and a portion of Mahoning County, said he believes Congress will approve the financial request from General Motors, Ford and Chrysler.
The heads of the companies will discuss their proposals Friday with the House Financial Services Committee, of which Wilson is a member.
The three companies are seeking as much as $34 billion in emergency aid from Congress.
Congressional leaders haven’t yet decided to hold a special session on the bailout package. But Wilson expects a vote in favor of the package sometime next week.
The top executives from the Big Three addressed Congress last month, seeking $25 billion in emergency loans as part of the $700 billion Wall Street bailout approved in October. That plan went nowhere primarily because of resistance from Republican senators.
Though he supported giving the loans to the Big Three last month, Wilson said the companies’ top officials didn’t help their cause by failing to provide needed information.
“Saying, ‘I don’t know how much we need to keep GM going.’ I would know,” Wilson said, if he was the head of the company.
Also, the company’s executives flew to Washington, D.C., in private jets to testify in front of Congress last month. This time, they drove to D.C. on Tuesday in hybrid cars.
“I’d like to see a little more humble, working-together attitude,” Wilson said.
The automakers have a more detailed plan this time, Wilson said.
GM is asking for $4 billion immediately as the first payment of a $12 billion loan, in addition to a $6 billion line of credit if the company’s finances doesn’t improve, according to The Associated Press.
Chrysler wants $7 billion, and Ford is requesting $9 billion.
Wilson said at the Regional Chamber luncheon that any money given to the Big Three would require collateral, such as preferred stock, to guarantee the loans would be repaid.
The loans would also come with provisions, he said, such as such as cuts to the management side of the companies and not providing large financial payments to corporate executives. As for other potential federal bailouts, Wilson said he’s hopeful the one for the automotive industry is the last one given by Congress.
skolnick@vindy.com