Top Senate Republican opposes $14B auto bailout

WASHINGTON (AP) - The top Senate Republican says he’s against a $14 billion bailout for U.S. automakers, breaking with President George W. Bush.
   
Minority Leader Mitch McConnell says the measure “isn’t nearly tough enough” on struggling automakers. The Kentucky Republican says a primary weakness in the measure is with the so-called “car czar.“ McConnell says that post wouldn’t have the power to force the car companies to make the tough concessions needed to ensure their survival.
   
And McConnell says the government shouldn’t intervene in some industries and not others.

South Carolina Senator Lindsey Graham (R-SC) also says he is opposed to the plan. He feels the business model of the big 3 automakers isn’t suited to survive a global economy (read the complete statement below.)
   
The measure is the product of a hard-fought deal between Democrats and the Bush White House. It passed the House on Wednesday night, and Democrats were trying to push it through the Senate as early as day’s end.

Graham’s statement on the bailout plan:
WASHINTON – U.S. Senator Lindsey Graham (R-South Carolina) made this statement on the auto bailout plan that passed by the House of Representatives yesterday.  The plan is scheduled to come before the Senate in the next few days.

Graham said:
“I oppose the current auto bailout plan. 

“Simply put, the model Detroit has created will not sustain itself in the global economy.  They need to make significant, structural changes before they receive federal assistance and those changes should be made in the private sector. 

“No one wants to see these companies fail and workers displaced.  I feel for the car dealers and their employees who are being hurt by years of bad decisions made by the leadership of the Big 3.  But I also realize that unless major, fundamental changes are made in the way the Big 3 operate, they will likely find themselves right back in the same situation. 

“I will continue to be open to proposals which help return the auto companies to profitable enterprises and protect the taxpayer.  The current plan does not meet those standards.”