Hello.  As your CEO I felt it imperative for me to communicate with you and explain our position on the government’s potential bailout of America’s automotive manufacturers.  While our profitability and success is dependent upon the success of all of the manufacturers we represent, we believe that this situation is critical because of its impact on America.  We always support our manufacturers and will do what we can to help them stay viable, we believe that the best course of action for them, and for our country is for the U.S. government to provide bridge loans to the domestic manufacturers who are feeling the impacts of our nation’s credit crisis.  Please familiarize yourself with the facts below, and feel free to pass them on to your friends, family, neighbors, and on-line social networks.
 
America stands at a financial crossroads.  As we work ourselves out of a credit morass, we find some of our nation’s last large scale manufacturers in dire straits. There shouldn’t be any debate over what we need to do.  America can never be a leader in the world, nor control her own destiny without a manufacturing base. We cannot allow any of our auto manufacturers to fail.  While there are many proposals being discussed about how to help GM, Chrysler, and Ford, let there be no mistake.  They must get our assistance. Allowing any of these companies to close or file bankruptcy will cost our country and our economy billions of dollars more than it will cost to help them.
 
Here are some important things to consider when discussing American automotive manufacturing:
 

• Prior to this crisis, the U.S. auto industry was aggressively and successfully restructuring.
• U.S.-based companies have closed the productivity gap of leading import manufacturers.
• Domestic manufacturers have closed the quality gap with Asian automakers.
• New labor agreements will make U.S. manufacturers’ labor costs competitive with foreign based manufacturers by 2010.

• The collapse of the U.S.-based auto industry would be devastating to the U.S. economy.  Estimates place the cost to the government at $100-$200 billion.
• Unemployment claims will skyrocket.
• The ranks of Americans without health insurance will increase by millions.
• Seniors on pensions will lose their incomes and will need to be cared for.
• Tax revenues to the states and the U.S. treasury will collapse at a time when costs are soaring.
• Without an American based car company, America’s energy policy will be dictated by foreign based corporations.

Lithia Motors, Inc. recognizes that all Americans would be impacted by the shutdown of America’s manufacturing base.  We ask you to join us in contacting your elected officials to help get the U.S. auto manufacturers the assistance they need, now.

Sid DeBoer
Chairman and CEO
Lithia Motors, Inc.