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Saturday November 21, 2009

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A rough day for the Detroit Three in Washington

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By: Kyle Swanson
Daily Staff Reporter
Published November 20th, 2008

Lawmakers are expected to meet in a special session to consider the plans the following week.

House Speaker Nancy Pelosi said Congress would not release any funds until plans from the automakers were submitted and reviewed.

“Until they show us the plan, we cannot show them the money,” Pelosi said at a press conference Thursday.

The White House offered little reassurance to questions about what would be done if Congress is unable to reach an agreement soon.

“If the Congress doesn’t act this week and one of the companies is in imminent danger of insolvency, we would suspect that they would want to come back and finish the work that they didn’t get done this week,” White House spokeswoman Dana Perino said. “I can’t imagine a scenario where they wouldn’t come back, unless the answer is that they just don’t care.”

In an interview with the Detroit Free Press, General Motors CEO Rick Wagoner expressed his frustration with the Congressional delay.

“We had said we felt that given all the uncertainties in the financial market, and weakness of sales in the auto market, we felt that urgent action was appropriate and needed,” Wagoner said.

Michael Flynn, research scientist emeritus at the University’s Transportation Research Institution, said he thought a bailout plan would have passed had auto executives not made a public relations mistake.

“I expect this would have passed if they didn’t fly to Washington in their corporate jets,” Flynn said. “That’s what torpedoed it.”

The CEOs of GM, Ford and Chrysler were criticized Wednesday for flying in separate private jets to Washington for testimony before congressional committees.

Flynn said Big Three executives now need to present a persuasive business plan to convince lawmakers to shell out money.

“We’ll be like the venture capitalists,” he said.

Flynn said Dingell’s loss would also affect the auto industry’s future.

“In a sense, they’ve now lost a friend,” he said. “Waxman is much more likely to hold their toes to the fire.”

Waxman, known for his focus on environmental issues, waged a silent campaign for the chairmanship. Many considered Pelosi, also of California, a Waxman supporter because of her decision not to back Dingell. Pelosi and Dingell have often clashed, while Pelosi and Waxman more aggressive moves on environmental protection.

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