Dearborn, MI - Congressman John D. Dingell (D-MI15) released the following statement in reaction to the announcement that the U.S. government will invest an additional $30 billion into General Motors (GM) as the company files for a Chapter 11 Section 363 (b) bankruptcy proceeding:

“I have every confidence that GM will emerge from court poised to once again lead the world in the automotive sector.  I know that the Obama Administration, the GM leadership, and Ron Gettlefinger and the United Auto Workers strived to make this process as straightforward as possible.  I am hopeful that General Motors, like we are seeing with Chrysler now, will soon emerge from the ‘quick-rinse’ bankruptcy swiftly, with a clean balance sheet and in a much stronger competitive position.

“The significance of the GM-UAW contract re-negotiation should not be discounted in court.  The concessions made by the UAW go beyond even those called for by the Bush Administration in its loan guarantee with GM and the workers and retirees who have already sacrificed so much should be protected. 

“It is welcome news that GM has committed to increase its share of U.S. production for U.S. sale by building a new small car at an idled UAW facility.  I will continue to fight for the core principle that my old friend Doug Fraser set forth many years ago: ‘If you sell here, build here.’

“I was also pleased that President Obama and General Motors were able to successfully negotiate a fair deal with a majority of GM’s unsecured bondholders.  This agreement should help to ensure that the bankruptcy process is more clear-cut than it would have otherwise been.

“Even with all the progress made before bankruptcy, the pain associated with this restructuring will be great, and it will be experienced by many.  GM employees – white and blue collar - suppliers, dealers, and auto communities will be hit hard by this process.  Now more than ever, we need to come together to develop and enhance training programs for our displaced workers so that they get back into the workforce quickly.  I look forward to spending time with Labor Secretary Hilda Solis and Director of Recovery for Auto Communities and Workers Dr. Ed Montgomery in Michigan’s 15th District on Tuesday as we tour a GM engine facility in Romulus and meet with displaced workers at a job re-training roundtable in Ypsilanti.

“This trip with Secretary Solis and Dr. Montgomery could not come at a more critical time.  In my community, we recently learned that GM-Willow Run Transmission Plant in Ypsilanti Township, Michigan will be closing.  This plant, once known as the ‘Arsenal of Democracy’ because during World War II workers there built the B-24 bomber that helped the U.S. win the War, has consistently been a leader in efficiency and quality for six-speed transmission engines.  While I am not in a position to second-guess the economic rationale behind this decision, I nevertheless fought against this outcome, arguing that the effectiveness of its operations and the history of the plant justified maintaining operations.  I urge General Motors to look at ways of utilizing this capable and efficient plant and its workers in the future as GM’s business model changes and progresses.”

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