Ralph Nader is still running for office.
In a letter to Senator Chris Dodd and Congressman Barney Frank consumer advocate Ralph Nader called on the Senate and House banking committees to hold “thorough” hearings to protect taxpayers’ investments and to seek answers to several questions about President Barack Obama’s Auto Task Force. Nader wants to know:
— Is the Task Force right in pushing for elimination of as many brands, as it has demanded?
— Is the Task Force asking for too many plants to close?
— Do GM and Chrysler really need to close as many dealerships as announced?
— Is the logic of closing dealers to enable the remaining dealers to charge higher prices; and if so, why is the government facilitating such a move?
— Is it reasonable and fair for GM to impose liability for disposing of unsold cars on dealers with which it severs relations, as Chrysler has apparently done?
— Has the Task Force evaluated the social ripple effects on suppliers, innovation, dealers, newspapers, banks and others that hold company stock and/or are company creditors, and other unique harms that might stem from bankruptcy?
— Would a government-driven bankruptcy process comport with the rights of owner-shareholders?
Nader also demanded to know why Obama’s Auto Task Force has maintained the Bush administration-negotiated obligation for unionized auto workers at GM and Chrysler to accept wages comparable to those in non-unionized Japanese company plants.
“Is the Task Force obtaining guarantees that, after restructuring with U.S. taxpayer financing, GM cars sold in the United States be made in the United States? If not, why not?” Nader asked in his letter.
Nader also raised another sensitive issue, one GM’s executives would prefer to avoid, how bankruptcy will affect GM’s overseas operations. “What are GM corporate entanglements with Chinese partners? Are they and their profits being exempted from the restrictions and cutbacks imposed on domestic operations? If there is such a disparity, is it reasonable and unavoidable?” he asked.
Nader also asked for information on what guarantees the Task Force obtaining to ensure that the GM of the future invests in safer and more fuel efficient vehicles, and what investments will the new company make in ecologically sustainable technologies?
“How will a potential bankruptcy filing affect, ignore or preclude any such future investments and commitments?” Nader said.
Nader’s letter arrived on Capitol Hills just as the debate over the conduct of the Auto Task Force is gaining momentum. The UAW has balked at GM’s plans, which have more or less been endorsed by talks force leader Steve Rattner, to import more vehicles from China. Rattner spent years in China during his long and sleaze-marred career as a Wall Street banker.
Congressmen from Missouri and Ohio are reportedly incensed that plants in their states have been targeted for shutdown as the Task Force has worked through the restructuring of Chrysler. Outraged dealers also have joined protests, which could easily develop into a full-fledged political mess for the administration’s efforts to restructure ailing U.S. carmakers.