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The Engine of Democracy Calls on Congress, White House to 'Refuel the Plane and Keep the Pilots'


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Supplier/Dealer Group says auto czar provides sufficient oversight.

WASHINGTON, Dec. 9, 2008; The Engine of Democracy, a group of automotive supplier and dealer leaders and employees from across the country, is calling on Congress and the White House to focus on providing emergency loans to America's car companies and put aside calls for top management changes.

"The analogy is clear," said Tim Leuliette, Dura Automotive Systems CEO and one of the organizers of this ad hoc group that claims up to six million jobs are at stake across America if automakers do not get loans to keep their operations going. "It's like a huge airliner with six million passengers that is running out of fuel. The refueling plane is poised to link up mid-air and give them needed jet fuel, but the guys on the ground are calling for a change in pilots before the planes link up."

"Simply put, we support the restructuring plans presented to Congress by the automakers last week," said Neil DeKoker, President of the Original Equipment Suppliers Association (OESA). "We also feel that a change in management at this time does not make sense. The government appointed Auto Czar should be allowed to assess the on-going restructuring plans and management. Currently, removal of a CEO is strictly symbolic and it could be a big mistake that would slow down the restructuring within the company, rather than speed it up."

While America's car companies plead for emergency loans from Washington, China's automakers are also asking for their government's help in the midst of tough economic environment amid a sales slump. In France, the European Union's industry chief said that "extraordinary measures" are needed for automakers in their part of the world.

"If the funds do not arrive, one-by-one the automakers will fall and, in turn, the supply base and the auto dealer body will fail," said Leuliette. "Millions of jobs will be at risk immediately. Everyone needs to realize that these automakers really act like a bank on a day-to-day basis; providing liquidity on the front end to the dealers and on the back end to the thousands of suppliers. Both of those entities in turn support thousands of small businesses on their own in every community they serve."

Leuliette noted that the automakers have been undergoing restructuring measures, aided by the United Auto Workers, which have resulted in considerable pain and sacrifice throughout the communities they support.

On December 5th, people representing 50 states and the District of Columbia, including supplier and dealer employees, gathered outside the Capitol in Washington to call for bridge loan funding. Each donned a jersey showing the jobs impact of Congressional inaction in all 50 U.S. states and the District of Columbia – six million jobs directly and indirectly impacted by America's car companies. The state-by-state impact of the jobs at risk is detailed on the group's website (www.theengineofdemocracy.com)

"The management of these companies didn't wake up yesterday and say we've got a problem," said Carl Galeana, a Chrysler, Jeep and Saturn dealer in Florida, Michigan and South Carolina who directly employs 402 people. "They have been facing these problems for more than three years now, restructuring along the way and making progress. Then, the companies were hit with a tsunami called the mortgage, insurance and banking industry meltdown -- not of their making -- and suddenly, they are persona no grata. Show them the money and let's save millions of jobs across this country."

The Engine of Democracy coalition includes automotive supplier and dealership employees, affiliated organizations and individual men and women who are concerned about the future of the domestic auto industry and what it means for America's economy and security. More at www.theengineofdemocracy.com.