McLEAN, Va. (Sept. 26, 2008) -- The National Automobile Dealers Association (NADA), along with 14 other leading trade groups, sent a letter Thursday to members of Congress urging them to act as soon as possible on the Treasury Department's economic recovery plan before their session adjourns.
U.S. Secretary of the Treasury Henry Paulson and Chairman of the Federal Reserve Board Ben Bernanke have indicated that the Troubled Assets Recovery Plan is essential to restoring certainty, stability and liquidity to the nation's credit markets.
A broad-based coalition of trade groups representing the financial, mortgage, manufacturing and automotive industries wrote in the letter, "The notion that Main Street and Wall Street are separate and distinct is inaccurate. The sophisticated interconnectivity of institutional market participants, individual investors, small businesses and pension funds--both large and small--reflects the broad range of Americans who have a great deal at stake in this debate.
"If the market conditions that have paralyzed the credit markets are allowed to continue and become exacerbated by inaction, every American's economic well-being could be at risk," the coalition said. "The recovery plan, in its most general sense, offers an opportunity to return to an orderly market while assuring maximum protection for taxpayers and a path to divestiture of private funds purchased by the public facility."
Separately, NADA has met with banking and financial services organizations to emphasize that the existing auto financing model is fundamentally strong and to convince lenders that it's in their best economic interest to continue making credit available for auto retailing.
"America’s financial liquidity crisis, which was created by mortgage lending, is constraining the availability of auto credit, which is the lifeblood of both dealerships at the wholesale level and car buyers at the retail level," said NADA Chairman Annette Sykora.
NADA supports Congressional efforts both to stabilize liquidity in the economy and to provide government funding that would make available $25 billion in loans for the auto industry.
"Our message to the financial community and Congress is simple: Auto financing is sound," Sykora said. "We just need liquidity to do our jobs. Consumers, even those with good credit, are finding it increasingly difficult to get financing."
Vice President, NADA Public Affairs
NADA Director of Public Relations