U.S. Senator Chris Dodd told reporters this afternoon there is probably not enough support to attempt a vote on a rescue package for the Detroit Big 3 automakers. While most Democrats support the plan, Republicans are generally staunchly opposed. This means the only option might be to wait for Barack Obama to be sworn in as President – something GM says it can’t hold out for.
“I would like to see us do something,” said Dodd. “But right now I don’t think we have the votes.” He went on to say he does not “know of a single Republican that’s willing to support” the measure.
Earlier today, Republican Senator Richard Shelby said the “financial straits” the Big 3 find themselves is not a result of the financial crisis, but “their problem.”
Dodd pointed to Shelby’s comments as the overall sentiment of Republicans.
“I want to be careful about bringing up a proposition that might fail,” warned Dodd. That means the only route might be to wait for an Obama administration to take power.
Dodd said “in light of the fact that the authority exists” for Obama and his new Treasury Secretary to act on the matter, waiting might be the default solution. He said the coming Obama administration has a much “greater willingness to deal with the issue.”
Obama, who openly supports aid to the struggling U.S. auto industry, will be sworn in January 20th. But GM recently said it needs financial help within weeks, not months.
Some analysts have warned a collapse of GM could result in three million jobs lost, and could spell disaster for Ford, Toyota, and Honda, which all rely on suppliers and other companies that would go bankrupt without GM’s ongoing business.
