MOULTRIE — A structured bankruptcy would be the best way to save the nation’s embattled automakers, U.S. Sen. Saxby Chambliss said Tuesday.
Chambliss, R-Ga., discussed the failed loan package that tanked last week when by a 52-35 vote the Senate failed to bring up for consideration a $14 billion loan package for U.S. automakers. Earlier Chambliss addressed a joint meeting of Kiwanis and Rotary Club members at Sunset Country Club.
“I am opposed to giving these companies money for the single reason the business model under which they operate is in trouble,” Chambliss, one of 32 Republicans who voted against ending debate on legislation, said during an interview following the Tuesday program. “Until they go through internal restructuring (they are) not going to be able to pay us back.”
Chambliss said that automakers’ creditors were willing to make concessions, and management of the companies was willing to restructure but that the automakers’ union was unwilling to make concessions.
“I think some sort of pre-structured Chapter 11 (bankruptcy) would be ideal for the manufacturers,” Chambliss said. “The people I’m concerned about are the dealers.”
A better use of the millions of dollars would be freeing up credit for people to purchase autos, Chambliss said.
“Credit is a major issue,” he said. “The credit sort of constricted to the point where people can’t get loans to buy cars.”
A United Auto Workers spokesman did not return a call Tuesday seeking comment.
The $700 financial package passed by Congress has helped somewhat in loosening credit, he said.
Tight credit also could be a problem for farmers next year as they get ready to plant crops, Chambliss said. The farm bill written this year should help give banks confidence that farmers can repay loans, and the Farm Credit Service also will be able to extend loans.
“Banks are going to be scrutinizing farmers more than ever this year,” Chambliss said.
During the program, Chambliss told his audience that President-elect Barack Obama was not his choice for president but that he is encouraged by his initial contacts with the incoming Democratic leader.
“He’s a very bright guy,” he said. “He’s an affable guy and I like him a lot. He’s surrounded himself with good people, and I think he’s going to be fine. We should all pray for him.”
Chambliss also said that he made a decision in the summer to join a bipartisan group on an energy plan to lower energy costs -- which included opening up more offshore drilling, more nuclear power and recycling of nuclear waste -- although it was not politically popular among many of his Republican colleagues.
Although gasoline prices have declined steeply, Chambliss said those ideas should not be put back on the shelf.
“It’s not going away,” he said. “Now is the perfect time to try doing this and getting toward energy self-sufficiency. I’m pretty excited about looking at this issue going forward.”
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Chambliss prefers a structured bankruptcy plan
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