Greenhouse Gas Suits Obstacle To Fed Aid – Auto Bailout

Auto Cos. Greenhouse Gas Suits Obstacle To Fed Aid Say Dems

December 05, 2008: 01:14 PM EST

WASHINGTON -(Dow Jones)- U.S. auto makers’ attempts to sue several states to block laws bringing forward stricter greenhouse gas emission limits is a significant obstacle among some Democratic lawmakers to providing the companies with emergency financial aid, House Financial Services Chairman Barney Frank, D- Mass., said Friday.

He told the heads of the three major car companies their efforts were proving to be a road block among some progressive Democratic members of the House of Representatives.

The issue is unlikely to be the deciding factor over whether an emergency rescue package is approved by Congress, but it is evidence that the longer the question drags on, the more reasons not to give aid are likely to emerge.

Rep. Carolyn Maloney, D-N.Y., asked lawmakers why taxpayers should approve a rescue of the companies when that money could be used to fund these suits. ” Why in the world should taxpayers in New York state or any state provide $38 billion in loans to your companies if you will continue to undo laws we have adopted in our states,” she said.

She asked each of the three executives whether they would pledge to not use any of the money they might receive from Congress to pay for legal or lobbying costs toward fighting tougher emissions bills.

None of the executives responded directly to her challenge, instead each of them said they preferred a national emissions standard as opposed to state-by- state legislation.

Maloney responded that 16 states were attempting to pass greenhouse gas laws similar to that adopted by California.
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Ok, so let me get this straight… US automakers are up a creek thats name starts with S. They have lost their paddle and are asking for a group of 50 people on shore to help save them. Yet they are going to continue to sue some of those same people they are asking to help… To further allow them to float down the creek if they choose to do so…

This makes absolutely no sense. None. They need money to stay afloat primarily because of bad business decisions and lack of foresight. They know that fuel efficiency is the wave of the future, yet they are too stubborn to drop lawsuits which would enforce tougher standards on fuel efficiency… And they want to use some of these funds from the bailout to [either directly or indirectly] pay for the continuation of these lawsuits… Why should the taxpayers help you if you are essentially suing them?! (among many other flawed reasonings).

I’m not a fan of the bailout, but if it goes ahead these emissions/effeciency lawsuits need to be dropped ASAP and they need to respect the states decisions. The automakers are in no position to be making demands of any kind right now.