Below The Beltway

The heads of the “Big Three” automakers were on Capitol Hill today making their case for a Federal bailout:

WASHINGTON — The heads of Detroit’s Big Three automakers and the United Auto Workers union testified Tuesday before a Senate committee that the domestic auto industry could face collapse without an emergency infusion of federal funds.

And at least one automaker offered information that it was in more dire straits than previously reported.

The remarks made before the Senate Banking Committee were part of an appeal by General Motors, Ford Motor Company and Chrysler. In their remarks, the executives said the need for help stemmed from the current financial turmoil, and not from poor management. And they pointed out the danger to the American economy if one would fail.

“What would it mean if the domestic industry were allowed to fail? The societal costs would be catastrophic — three million jobs lost within the first year, U.S. personal income reduced by $150 billion, and a government tax loss of more than $156 billion over three year,” the chief executive of General Motors, Rick Wagoner, said in prepared testimony.

The three chief executives, Mr. Wagoner, Alan Mulally of Ford and Robert Nardelli of Chrysler, are testifying in an effort to get $25 billion in loans to keep them operating.

“We’ll use this bridge to pay for essential operations,” Mr. Wagoner said, “new vehicles and powertrains, parts from our suppliers, wages and benefits for our workers and retirees, and taxes for state and local governments that help deliver essential services to millions of Americans. You can help us through this crisis. In return, we will repay the taxpayer’s faith and support many times over, for many years to come.”

Mr. Nardelli echoed some of Mr. Wagoner’s remarks: “There are 4.5 million people depending on this industry, and without assistance, nearly three million of them could lose their jobs in the next 12 months.”

“Failing to act now will hurt many American families and undermine our country’s economic recovery,” Mr. Nardelli said, “far outweighing the costs related to supporting an industry that touches every district in every state in the nation.”

G.M., the largest American automaker, is in desperate need of cash to survive the worst vehicle market in the United States in 15 years. Earlier this month, G.M. said it was spending down its cash reserves by more than $2 billion a month and could run out of money without federal aid.

Tuesday, in his prepared testimony, Mr. Nardelli said that without immediate help, Chrysler’s liquidity could quickly fall below the level needed to sustain operations.

The Chairman of Ford even had the audacity to suggest earlier today that the mistakes the Big Three made in the past aren’t relevant to deciding what to do now.

Essentially, these three guys are just saying we need to give them the money, not ask any questions about why they need it, and not ask any questions about what they’re going to do with it.

Sounds like a sucker’s bet to me.