Michigan U.S. Senator Debbie Stabenow gave a statement on the floor of the Senate last night in support of the bill which would help the auto industry re-organize (video below). The bill failed to pass the Senate, leaving auto industry leaders and Michigan’s elected officials scrambling to put pressure on the Bush Administration to finance the loans out of TARP funds, which were authorized by the Congress earlier this year to address the financial market crisis with a $700 billion bailout.

Stabenow also released the following statement regarding the failed bill:
 

“The compromise that failed this evening would have provided the critical bridge-loan funding needed to help our automakers through this global credit crisis, while preserving jobs here at home. In addition, this legislation would have put into place critical transparency and accountability for taxpayers.

“Instead, Republican Senators have chosen to put over 2.5 million American jobs at risk. Manufacturing makes up the backbone of our economy, and tonight’s vote has put our economy and the future of manufacturing in jeopardy.

“I am deeply disappointed that a few votes stood in the way of making the necessary commitment to save our manufacturing base and invest in good-paying, middle-class jobs in Michigan and around our country.”

“But even in this disappointment there is still hope. All throughout this debate, the President has had the authority to use the TARP funding to provide the needed funds for a bridge-loan and the Federal Reserve also as the power to give loans to the companies. I call on the President and his administration to use the authority they have to save our manufacturing base and preserve the middle-class.”

Michigan Gov. Jennifer Granholm, who has been actively involved in negotiations for the loans for the auto industry, will hold a press conference at 3:15 p.m. today in her Lansing office to discuss the auto industry. She also released the following press statement about the Senate vote:

“Republican senators have just delivered a fierce slap at three million workers across America. Their no vote is an astounding blow: They have chosen to ignore the livelihood of three million Americans, three million families, and in the process have chosen to drive the American manufacturing industry – and perhaps the American economy – into the ground. They are choosing foreign competitors over American industry and American workers. A nation without a strong manufacturing sector is a nation without a viable defense sector. This is a shameful day, a day we will not forget. I implore President Bush not to let the American economy slide from recession into depression as he leaves office. Direct the Treasury Secretary or the Chairman of the Federal Reserve to use their authority to save the American auto industry, three million American jobs, and our nation’s economy. The moment could not be more urgent. Mr. President, American workers are depending on you. Save these jobs.”

Lt. Gov. John Cherry also issued a statement about the vote:

“We are witnessing Congressional unraveling of the American Dream and the demolition of the very foundation of our national security. A few beltway insiders who are completely out of touch with the struggles of American families decided to settle old political scores at the expense of millions of jobs and our national economic security. While bankers get the keys to the Treasury our manufacturers get a one-way ticket to bankruptcy and American families are left unprotected.”

Video of Sen. Stabenow’s statement last night: