See How Your Politicians Voted
Title: Automotive Industry Financing
Vote Smart's Synopsis:
Vote to pass a bill that authorizes $14 billion in bridge and restructuring loans to American automotive manufacturers.
- Requires the President to designate one or more officials ("Car Czars") to be overseen by the Comptroller General in order to assess auto manufacturers' recovery plans and approve bridge loans (Secs. 3-4).
- Allocates $14 billion for bridge loans and long-term restructuring loans to American auto companies that submitted recovery plans to the government by December 2, 2008 (Secs. 4 & 10).
- Requires participating auto manufacturers to submit a final restructuring plan to the President's designee by March 31, 2009, unless the designee chooses to postpone the deadline until April 30, 2009 (Sec. 6).
- Specifies that bridge loans to a manufacturer will only be approved if the submitted restructuring plan will allow for repayment of all government loans, produce more efficient vehicles, rationalize costs, raise private capital, and manufacture a product line that will be competitive in the U.S. market (Sec. 6).
- Transfers $7.01 billion from funds previously appropriated to the Department of Energy for direct loans to auto manufacturers producing advanced technology vehicles, and reserves $5000 million for tax incentives to produce efficient, low-emissions vehicles (Sec. 10).
- Authorizes the President's designee to inspect all records of an auto manufacturer receiving government loans, to review and prohibit any business transaction valued at greater than $100 million, and to cancel financial assistance or require more rapid repayment of loans if participating manufacturers fail to meet the requirements of this act (Sec. 11).
- Prohibits obligations from government financial assistance to auto manufacturers from being discharged due to bankruptcy under Title 11 of United States Code (Sec. 12).
- Imposes limits on bonuses and incentive payments to the 25 most highly compensated executives in each participating company (Sec. 12).
- Halts payment of dividends during the period that the government's loan is outstanding (Sec. 12).