Suburban lawmakers debate auto industry bailout
While acknowledging the sweeping ramifications of a domestic auto industry collapse on Illinois' economy, suburban lawmakers questioned executives of the Big Three Friday, some in a skeptical tone.
Five suburban congressional representatives sit on the House committee now weighing a $34 billion rescue package for General Motors, Ford and Chrysler. The lawmakers in total represent most of the West and Northwest suburbs, from Naperville to Antioch and Des Plaines to St. Charles.
U.S. Rep. Peter Roskam, a Wheaton Republican in the DuPage County based 6th District, appears to be the most critical of a Big Three bailout. He submitted comments at the committee indicating he doesn't believe the current proposal is the only option.
"There are still steps that can be taken before we ask the taxpayers to shoulder the burdens of these auto companies," Roskam wrote. He added later that "the last two months have shown us that even in extraordinary times, the sun continues to rise."
Still, Roskam and other suburban lawmakers say tens of thousands of jobs in the suburbs are tied to the livelihood of GM, Ford and Chrysler.
Nearly 8,000 jobs in Illinois are directly tied to the Big Three and that doesn't include thousands more at independent car dealerships across the Chicago area, according to data provided to the state by economic analyst Dun & Bradstreet.
Three manufacturing plants employ thousands in northwestern Illinois, including Ford facilities in Chicago and Chicago Heights and a Chrysler plant in Belvidere.
The pain is already being felt.
Lattof Chevrolet in Arlington Heights closed in early October after 70 years in the business.
U.S. Rep. Melissa Bean spoke of the damage already seen in her 8th District, which covers parts of McHenry County, western Lake County and northwest Cook County.
"Their own economic viability is very much tied to yours," Bean said during her questioning of automaker executives in relation to dealerships and other businesses suffering in Illinois.
The Barrington Democrat stressed the need for better public relations, both in selling cars and the bailout.
"You seem to truly miss the part where you are truly failing and that is marketing," she said.
One of Chrysler's manufacturing plants sits in the district of U.S. Rep. Don Manzullo, a Rockford Republican who is critical of the current proposal, including provisions that allow the automakers to gain banking powers.
"Your job is to make cars," Manzullo said.
Manzullo is in favor of helping the industry overall, however, and wants to create tax incentives for car purchases.
U.S. Rep. Judy Biggert, a Hinsdale Republican in the 13th District, questioned executives about why cars are not selling and whether a bailout would fix that.
"What we all want to know is this - are the big three auto companies not selling cars because Americans don't want their cars?" she prodded.
The executives say the faltering economy has consumers afraid to make big purchases.
U.S. Rep. Bill Foster, a Geneva Democrat in the far western 14th District, is also on the House Financial Services Committee. Foster and other suburban lawmakers have not yet taken positions on the still vague bailout proposal.