United Autoworkers union calls on Bush administration to use funds from the $700 billion Wall Street bailout to save the auto industry.
The United Auto Workers union said it is encouraged by the White House's decision to consider rescuing troubled auto companies by using funds set aside to bail out Wall Street.
"We do appreciate the positive statement that was released by the White House this morning that says they are reviewing all options that are necessary -including TARP - to help the industry," said UAW President Ron Gettelfinger.
A legislative plan to provide $14 billion in stopgap loans died in the Senate late Thursday night. On Friday morning, the Bush administration -- shifting its long-held view -- said it might use its authority to give automakers their bailout from the $700 billion Troubled Asset Relief Program funding.
Gettelfinger said the auto industry remains in peril, and criticized the government for being slow to react. He lambasted Senate Republicans for rejecting what he said was a bipartisan restructuring of the auto industry that the UAW agreed to.
"Now, the only resolution is for Treasury to use TARP funds," Gettelfinger said. "UAW calls on Secretary of the Treasury Paulson or the Federal Reserve to use their authority to prevent the imminent collapse of auto companies and the devastating consequences that would follow."
