Stabenow Announces Bill to Provide $12 Billion to Automakers

U.S. Senator Debbie Stabenow - Press Release

FOR IMMEDIATE RELEASE June 28, 2007		Contact: Press Office Phone: 202-224-4822

Financing Would Help Retool Older Facilities to Produce Advance Tech Vehicles

WASHINGTON —U.S. Senator Debbie Stabenow (D-MI) today announced legislation to provide $12 billion in financing to American automobile manufacturers to retool older facilities in order to produce advanced technology vehicles, such as flex fuels and hybrids.

“We need a 21st century strategy that works with American manufacturers to decrease greenhouse gas emissions while curbing our dependence on foreign oil,” said Stabenow . “This is a great investment in an industry that employs hundreds of thousands of American workers and is racing to produce cleaner, more fuel efficient products.”

The proposed legislation would provide $12 billion in private activity bonds to finance the reconstruction of a facility, or a portion of a facility for the development of advanced technology vehicles, such as flex fuel, E85 and hybrids. The private activity bond offers a higher leverage ratio than tax credit bonds. For every dollar spent, the bond leverages 10 times that amount in the marketplace.

Since 2001, the United States has lost more than 3 million manufacturing jobs and Michigan has lost more than 250,000. The proposal would provide valuable investment into a domestic industry that directly employees hundreds of thousands of Americans, and indirectly supports millions more.