Subscribe
Jobs
Cars
Real Estate
Apts
Classifieds
Shop
WASHINGTON – Rep. Mark Souder, R-3rd, is “looking for a reason” to support the $34 billion lifeline the U.S. automakers have asked the taxpayers to throw them.
He said he fears what would happen to the regional economy if the Allen County GM truck plant closed, throwing its 2,700 workers and 10,000 employees at parts suppliers out of business.
GM is one of the two biggest taxpayers in Allen County. If the plant closes, Souder said, other taxpayers would have to make up the difference or services – such as fire departments – would be cut.
After a two-hour meeting with GM officials, union representatives, car dealers, social service-agency executives, retired autoworkers and parts manufacturers Thursday afternoon, Souder said he is leaning toward supporting the rescue package.
But he said he wants more information about the automakers’ business plans, the strategy for paying back the loans and other details. Souder will meet this morning with GM officials who said they will show him some of the information that hasn’t been made public.
“I represent a GM district. I represent a GM city, and I am looking for a reason to vote ‘yes’ if there is a reasonable plan,” he said in an interview after the meeting with about 30 representatives of the auto and related industries.
Souder said he went into the meeting convinced that the Allen County truck plant would survive even if GM went into bankruptcy because it is so efficient, is close to rail and truck transportation and has many parts suppliers nearby.
But he said he learned that other plants are equally competitive in those areas, meaning the Allen County plant is not immune to closure.
Souder also said the meeting participants made the case that if GM files for bankruptcy, consumers would be more wary about buying GM vehicles. If that happens, he said, the downward spiral would quicken and deepen.
“Bankruptcy is not really an option,” he said.
Instead, Souder said, it would be far better for the automakers, unions, suppliers and others to develop a strong package and plan.
One essential element, he said, is more transparency about executive pay and lower salaries. Others are fewer models of vehicles, fewer dealerships and possibly the merger of Chrysler and GM.
Souder added that if the domestic car and truck manufacturers close, overseas makers will pick up the slack because the foreign-based manufacturers with U.S. plants won’t be able to produce enough cars and trucks.
The United Auto Workers actively campaigned for Souder’s defeat last month – the union gave Democrat Michael Montagano $10,000, the maximum contribution – but Souder said that hasn’t dramatically colored his view of the situation.
“It didn’t endear me to them,” he said, “but you can’t live in our area without friends, relatives and ties in the auto business.”
sylviasmith@jg.net
