June 3, 2009
To: Ron Gettelfinger
From: Alan Reuther
Subject: Senate Action on Fleet Modernization Legislation
Tomorrow the Senate may begin debate on competing amendments to establish fleet modernization (so-called "cash-for-clunkers") programs. The UAW is strongly urging Senators to support the amendment that will be offered by Senators Stabenow and Brownback, and to oppose the misguided amendment that will be offered by Senator Feinstein.
The Stabenow-Brownback amendment incorporates compromise provisions that were agreed to by the Obama administration, House Democratic leaders, the Detroit-based automakers and the UAW. It would provide incentives for consumers to scrap older, less fuel efficient vehicles and to purchase new, higher mpg vehicles. This would reduce oil consumption and greenhouse gas emissions. At the same time, it would provide an immediate boost to auto sales, thereby helping to preserve auto production and jobs in this country. Significantly, the structure of this program is carefully crafted so it would apply to all auto companies in a balanced, competitively neutral manner.
In contrast, the Feinstein amendment contains extreme requirements that heavily favor vehicles built overseas by foreign auto companies. Thus, a large portion of the incentives provided under this amendment would wind up subsidizing the production of vehicles made in Japan and other countries. This would inevitably lead to more plant closings and further job loss in the United States.
UAW activists should be encouraged to contact their Senators right away on this important issue. They should urge Senators to vote for the Stabenow-Brownback fleet modernization amendment, and against the Feinstein amendment. Activists should tell Senators that taxpayers' monies should be used to support auto production and jobs in the United States, not to subsidize auto production in other countries!
UAW activists can call their Senators by using the following toll free number: 1-866-338-5720.
Thanks in advance for everyone’s efforts on this issue!