Dan Weiss on the Auto Industry

Should Congress help out the auto industry?

The American auto industry is a central part of our manufacturing economy. It's estimated that one in 10 jobs in the United States is related to the auto industry. If any or all of the companies should go under, it could lead to unemployment of two and a half million people. Just to put that in perspective, that's twice as many people as have lost their jobs so far this year. Congress must help the auto industries by giving them a bridge loan that will allow them to continue to operate while they retool to make the super-clean, efficient cars of the future.

Can the federal loan help the auto industry move toward a clean energy economy?

The plans that the auto industries have submitted to Congress indicate that they're planning to build much more cleaner cars. Ford has indicated that they'll have cars that are 40 percent more fuel efficient in the next couple of years. And General Motors plans to have the Volt on the road in two years. That's a plug-in hybrid electric vehicle that can go up to 40 miles a day only on a battery charge, using no gasoline. So I think that if they were to get these bridge loans, they would be able to continue these efforts. Of course, one of the conditions of the bridge loans is they've got to make sure they continue and enhance their effort to build super-efficient cars.

What must be included in the plan to ensure that it helps both energy and the economy?

When the CEOs of the auto industries came here in November to testify, they basically asked for a blank check. That won't do. If the bridge loans are granted, they need to include a number of conditions. These conditions include making sure they keep their commitments to their retirees and their employees when it comes to health care and pensions. They need to make sure that they continue to build these super-clean, efficient cars they promised. In addition, the auto industries must agree to drop their legal and lobbying challenges to additional fuel economy standards or greenhouse gas emissions standards for motor vehicles.