Dearborn, MI - Congressman John D. Dingell (D-MI15) released the following statement today in response to the additional loan requests submitted to the government yesterday by General Motors and Chrysler LLC:

“Yesterday, General Motors and Chrysler requested up to an additional $21.6 billion in loans from the Treasury to complete their recovery plans.  Although this is a substantial sum, I support the companies’ request because I have faith in their viability plans and shudder to think of the shock that their bankruptcies would cause the Nation’s already severely weakened economy.  GM and Chrysler estimate that without additional loans from the Treasury, the cost of bankruptcy would approach $100 billion and $25 billion, respectively.  These funds would likely have to come from the Federal Government, as I find it highly doubtful that either company would find a private source of capital for debtor-in-possession financing.  Absent such funds for bankruptcy, both companies would be forced to liquidate themselves, resulting in over 100,000 additional job losses and the decimation of the American supplier base, thus ultimately crippling the country’s manufacturing sector.

“Casting aside the specter of financial collapse, I am heartened by GM’s and Chrysler’s plans to tackle concerns about fuel economy by increasing the number of fuel-efficient and alternative-fuel vehicles each offers for sale.  GM, according to its viability plan, will offer nearly 30 hybrid and plug-in models by 2015, and the total number of vehicles with fuel efficiency above 30 miles-per-gallon will total nearly 35.  By 2015, GM projects that the average fuel economy for its light duty passenger vehicles will be 38.6 miles-per-gallon and 27.6 miles-per-gallon for its trucks.  Chrysler projects similar fuel economy ratings – 35.4 and 28.3 miles-per-gallon respectively for cars and trucks – and plans to have 15 vehicles with fuel economy ratings above 30 miles-per-gallon and eight hybrid and electric vehicles for sale by 2015.

“I urge the Treasury to approve these additional loan requests because they are a worthwhile investment in the future of the United States.  GM and Chrysler can and will become competitive players in the automotive market again.  By refusing them additional loans and thereby denying them this chance, we risk unthinkable economic peril.”