PPG Chair Calls for Action in Auto Bailout
PPG Industries chairperson and chief executive officer Charles Bunch penned a letter late yesterday to all of the U.S. senators urging them to take action in assisting the Big Three auto manufacturers. In the letter, sent officially from the National Association of Manufacturers, of which Bunch is chairperson, he writes, "Like many other domestic manufacturers in the auto industry supply chain, PPG Industries would face severe economic consequences if this matter is not addressed immediately."
He notes that in 2008 the auto industry provided PPG more than $500 million in sales and more than 1,260 manufacturing and research and development jobs to PPG employees.
"Allowing the auto industry to collapse would put these and the more than 600,000 other jobs in the auto parts supply chain in jeopardy," Bunch writes.
Bunch calls the auto industry relief a "critical component in [the] overall effort to restore confidence to consumers and investors, and stabilize the economy."
"A stable auto industry is critical to our nation's economic recovery," he continues.
The vote to assist the Big Three auto manufacturers with a $14 million bailout failed yesterday. However, White House press secretary Dana Perino issued a statement today noting that the legislation under consideration "provided an opportunity to use funds already appropriated for automakers, and presented the best chance to avoid a disorderly bankruptcy while ensuring taxpayer funds go only to firms whose stakeholders were prepared to make the difficult decisions to become viable, competitive firms in the future."
"However, given the current weakened state of the U.S. economy, we will consider other options if necessary," she says, "Including the use of the [Troubled Asset Relief Program], to prevent a collapse of troubled automakers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."
The Troubled Asset Relief Program was created by the Emergency Economic Stabilization Act of 2008.
Many industry representatives have concerns about what impact the automotive
industry could have on this sector.
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