So despite what I’ve blogged here, CAPAF is putting out a letter supporting the idea of a carmaker bailout subject to the following conditions:
To ensure that the managers who helped create this mess are not unduly rewarded, the loans must disallow excessive executive compensation. In addition, the auto companies must fulfill their commitments to provide both health care and retirement security for their employees and retirees. The companies must commit to continue their research and development of advanced, clean-vehicle technology and energy efficient manufacturing. A loan oversight board should ensure the companies develop a long-term business plan based on the production and sale of fuel-efficient vehicles.
The auto companies should embrace—not resist—the transition to less polluting vehicles. They should assure Congress that they will cease their legal and lobbying opposition to the imminent new fuel economy standards, and the California motor vehicle greenhouse gas standards that President-elect Obama said he would allow. These measures will reduce oil dependence, increase national security, save families money, and reduce pollution. In addition to harming the nation, continued opposition to these standards would keep the companies on the path that got them in this mess in the first place.
Please support the $25 billion loan for U.S. auto companies and include the aforementioned safeguards. This will help protect American jobs and ensure progress toward significantly more efficient vehicles. Thank you.
At a minimum, I would go further on the lobbying stuff. If progressive politicians are going to be giving taxpayer money to carmakers as part of a transition to our bold green future, we should expect them to cease all lobbying against progressive environmental legislation, not just fuel economy standards.