Michigan's Got the Goods

We've got the capacity,Governor Granholm insisted.We've got a workforce that's hungry.We want to be the ones that produce those electric vehicles.Come on over! We want Chrysler to be big and vibrant,producing those vehicles that lead us to be independent of foreign oil.This bankruptcy gives us the ability to leapfrog,to be the place where that happens.This is a defining moment for Michigan.Michigan has blue ribbon factories for not producing waste.This is not your father's UAW,the Michigan Democrat observed,who has been mentioned as a U.S. Supreme Court prospect.

A Rough Ride Ahead

General Motors has a significant hurdle to climb with the bondholders,Michigan governor Jennifer Granholm noted.You can read the tealeaves in the Chrysler news.GM is the next shoe to drop.Let's support the home team,the governor urged.Let's make sure we have a viable company on the other side of bankruptcy.We're gonna have a tough period of time as the Chrysler plants go into hibernation for the next 30-60 days.People feared there would be a liquidation,but these companies are not gonna go away.The bankruptcy announcement will ensure the survival of Chrysler.If the court does what it's supposed to do,the risk to jobs will be greatly diminished,Governor Granholm pointed out.

Confident in Chrysler

Michigan governor Jennifer Granholm is confident in the future of Chrysler,which is in Chapter 11 bankruptcy protection.We are gonna see Chrysler emerge as a stronger,leaner,greener company, she said.They've got agreements with the vast majority of stakeholders.The hedge funds were offered a premium,but they rejected it because they wanted more.I don't know that hedge funds were acting in their investors' best interest,the governor remarked.Saving Chrysler is about jobs-38,000 jobs inside Michigan alone,Governor Granholm indicated.Under the agreements,which must be approved by a bankruptcy court,the U.S. government will get an 8% stake in Chrysler,the third-largest North American automaker;the Canadian government will get 2%;Italian automaker Fiat will get 20-35%,depending on whether targets are met;and the United Auto Workers and Canadian Auto Workers will get a 55% stake in the firm,which was privately held by Cerberus Capital Management.

Health Uncle:Legislation Update

President Obama has signed a bill into law that extends health insurance to four million more children,for a total of 11 million.The State Children's Health Insurance Program,SCHIP,has been renewed for 4.5 years.The program covers children who are ineligible for Medicaid,yet whose parents cannot afford private insurance.The cost of the program is an estimated 33 billion dollars.An increase in tobacco taxes,including a 61-cent increase on each pack of cigarettes,for a total of 1.00 per pack in federal excise taxes,will fund the program.Meanwhile,Congress continues to consider the economic stimulus plan,which includes funding for digitizing medical records and extending health insurance for laid-off workers.Governor Jennifer Granholm of Michigan has issued an impassioned plea for Congress to act now.Each day the situation in Michigan gets worse,she said.Just yesterday,she learned of 4,000 more layoffs.We can amend the bill later,the governor cajoled.There are 40 billion dollars' worth of shovel-ready projects in Michigan,Governor Granholm contended,visibly concerned about the citizens she serves.

A Central Industry

The auto industry is of the utmost importance to the U.S. economy,says John Engler of the National Association of Manufacturers.There's overcapacity,and capacity is gonna have to come out.The auto industry accounts for 20% of manufacturing Gross Domestic Product.The failure of even one automaker could have a crippling effect.Our top priority is to get the economy moving and see job creation.Without a growing economy,very little in the public sphere is possible.We support funding now for 20 billion in shovel-ready infrastructure projects,the former Michigan governor stated.We still need global trade,but we need to be careful in an era of global recession that trade barriers aren't snuck in,Mr.Engler warned.