Story Published:
Nov 18, 2008 at 7:01 PM EST
Story Updated:
Nov 18, 2008 at 7:01 PM EST
AUGUSTA, Ga. - The Bush Administration, Republicans and even Democrats say they oppose using part of the $700 billion financial industry bailout to help the auto industry.
Top executives from General Motors, Ford and Chrysler pleaded for a $25 billion lifeline Tuesday, but lawmakers aren't ready to give them one.
"I feel a great responsibility to stick with what the purpose is, and the purpose is to stabilize our financial system,” says Treasury Secretary, Henry Paulson. “I believe that the auto companies fall outside of that purpose."
In Augusta, car sales have been slow according to Gordon Chevrolet General Manager, Adam Logemann.
"There's absolutely no question that regionally and nationally, auto sales have been hurt," says Logemann.
GM, Ford, Chevrolet, and even foreign auto dealers like Toyota and Nissan—everyone is selling less vehicles, but it's not just the dealers and manufacturers that would be affected if the auto industry fails.
"It supports millions and millions of jobs,” says Logemann. “When you look at it from a flow through perspective, it's not just the union workers on the line who are putting the cars together and the guys in the lots that are selling them; there's hundreds and hundreds of industries that are tied to the automotive industry. Their livelihood is based on it."
The head of the Senate banking panel says the automakers' troubles seem to be largely self-inflicted.
"No matter what happens, General Motors needs to step back and completely reorganize their manufacturing process,” says Logemann. “Their labor process and the number of products they offer in the market place right now."
General Motors CEO says three million jobs would be lost in the first year and economic devastation would follow. He says the auto industry's problems are the direct result of the global financial crisis and the meltdown has severely restricted credit availability and reduced industry sales to their lowest per-capita level since World War II.
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