Sen. Nelson: New auto leadership should be among loan conditions

Sen. Nelson: New auto leadership should be among loan conditionsBy TODD SPANGLERFREE PRESS WASHINGTON STAFF WASHINGTON – Even some Democrats in the U.S. Senate have harsh words for Detroit’s automakers as a bailout bill for the industry is bandied about. Sen. Bill Nelson of Florida said a $25 billion bailout of the industry may be necessary given the state of the economy but it must be conditioned on the loans being paid back and the senior management of General Motors, Ford Motor Co. and Chrysler LLC being removed. He said there needs to be assurances the money is being used to create a new, sustainable auto industry in the U.S. and that means “new eyes, new ears to steer us out of this mess.” Nelson also said executive compensation must be limited, sweetheart deals for retiring or departing executives curtailed and a halt to dividends while the companies are still losing money. Perhaps most importantly, Nelson also said a condition of his support is a demand that American fleets get 40 miles per gallon by 2018 and 50 m.p.g by 2020. Under rules set last year, fuel economy standards would be 35 m.p.g. by 2020. “Technically, it can be done if only we have the will,” said Nelson of his tougher standards. The Florida senator also said he worries that, unlike 1979, when Chrysler got $1.2 billion in a government bailout, there is no figure like Lee Iacocca – the company’s head back then – to soothe doubts that the auto industry was ready to change. “Where are the Lee Iococca’s?” he asked. “We don’t see them.”