INDIANAPOLIS (WISH) - Democratic Congressional leaders said they will wait until
December to vote on a relief package for the auto industry.
House Speaker Nancy Pelosi and Senate Majority Leader Harry
Reid said the big three need to come up with a plan to show how
federal money will make them financially viable.
Many Republicans believe that plan should include big
concessions, such as cuts in pay and benefits.
In an op-ed piece in Thursday's Indianapolis Star, Senator
Lugar writes "Success today will require that all parties,
management, workers, creditors, and shareholders make concessions."
Concessions like cuts to pay and benefits. Former
Massachusetts Governor Mitt Romney takes it a step further.
"There's no question that if you just write a check, that
you're going to see these companies go out of business ultimately
instead we have to help these companies restructure," said Romney.
And Romney believes bankruptcy is the way to do that. The
dean of Butler's Business School agrees.
"Would a banker approve a no strings low interest loan to the
auto industry at this point? Probably not," said Chuck Williams,
Dean of Butler's Business School.
When asked if bankruptcy is the answer for the big three?
Chuck said, "In the long-run I think it could be the best
thing but I'm also sensitive to the challenges this presents to
And while he believes workers pay should be slashed. He said
cuts should start at the top with executive pay, perks, and private
jets. The same jets the big three CEO's used to fly to Washington
to ask for money.
He said ultimately unless you produce a cheaper, more
reliable, more innovative product, people are going to continue to
buy Japanese or German made products.