Auto Bosses Seek Help On Capitol Hill

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MELISSA BLOCK, host:

The Senate Banking Committee gathered once again today to hear calls for a financial rescue package, this time for the automakers. The CEOs of Detroit's Big Three are asking for $25 billion to keep American car manufacturing alive. General Motors has already said it's running out of money, and today, Chrysler said it, too, is running out of cash. The announcement seemed designed to put even more pressure on Congress to do something.

NPR's labor correspondent, Frank Langfitt, has been following the hearing. And, Frank, first, tell us more about this news from Chrysler, today.

FRANK LANGFITT: Well, you know, Melissa, we knew that GM was burning through about $2 billion a month, and it could run out money as early as next year. But up until now, we really haven't heard much from Chrysler. You know, they're owned by a private equity firm now, and they don't have to make their books open and available.

But today at the hearing, Robert Nardelli said that there may not be enough money to keep operating the company going forward. And he said, if Chrysler didn't get a loan, it could put about 56,000 jobs at risk. Ron Gettelfinger, he's the head of United Auto Workers, he also came out to support the Detroit Three today. And here's how he described the situation.

Mr. RON GETTLEFINGER (President, United Auto Workers): Without question, in our mind, it is dire, it is critical, it is a crisis.

BLOCK: Well, this is new pressure on Congress to do something. How did the senators respond today to this request for loans?

LANGFITT: Well, you know, it's still going on. But much of the early going, it was pretty lacerating and hostile in terms of the questions and the statements. Senator Christopher Dodd, he's the Banking Committee chair, he's a Democrat from Connecticut, and he ultimately supports this bailout. But in his opening statement, he was really critical, and he talked about the difficulties that the companies face. And if you didn't know it, you would think he was actually against it. Here's a little bit of what he said.

Senator CHRISTOPHER DODD (Democrat, Connecticut): They are seeking treatment for wounds that I believe, to a large extent, were self-inflicted. No one can say that they didn't see this coming. Their companies have been struggling for years. Their board rooms and executive suites, in my view, have been famously devoid of vision.

BLOCK: Was there a similar criticism of management from other members of the committee?

LANGFITT: A lot. You heard people saying that the executives have fought fuel economy standards, that they had married their business plan to these big SUVs, and then when four-dollar gas came by, you know, earlier this year, it demolished their business strategies. Some said, if there's going to be any bailout, there are going to big strings attached. They're going to have to do more about fuel efficiency. And a number of people said executive heads really need to roll.

BLOCK: It doesn't sound like the Big Three were getting much love on Capitol Hill today, Frank. Was there anybody springing to their defense?

LANGFITT: Yeah, there were some. I mean, people came out and said, you know, the companies have forced big healthcare concessions on the UAW. They did this last year in Detroit. And, of course, they didn't create this credit crunch and recession that has kind of knocked out the car industry. They also said it wasn't fair to give billions to investment banks and not to help out the auto industry.

BLOCK: Does the industry still have the political clout that it enjoyed at one time?

LANGFITT: You know, not as much as it did. Certainly, organized labor helped President-elect Obama in Ohio, a big auto state, but the shift now - you see a lot of these new companies in the last 10, 15 years in the South, they're Toyota, Honda. And so, some of the senators, they have some of these workers in their own states and are a little less interested maybe in helping out Detroit.

BLOCK: Bottom line, Frank, very briefly, what's the prospect for loans for the Big Three from Congress?

LANGFITT: Right now, very unlikely. There are just not enough votes in the Senate. It may have to wait until next year. And now, the question is, can GM and now Chrysler, do they have enough money to last?

BLOCK: OK, Frank, thanks so much.

LANGFITT: Happy to do it.

BLOCK: It's NPR's Frank Langfitt.

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