Big Three Spending Millions On Lobbying

Auto Makers Drowning In Red, But Still Spent Neary $50 Million Lobbying Congress

(CBS)  As Congress mulls over a bailout for U.S. automakers, some may be thinking about more than jobs and the economy.

The auto industry spent nearly $50 million lobbying Congress in the first nine months of this year.

And people tied to the auto industry gave another $15 million in campaign contributions, CBS News investigative correspondent Sharyl Attkisson reports.

It's not surprising that a lot of that money went to members of Congress from Michigan, where the auto industry is the biggest employer and politicians are passionate advocates for their constituents.

Take Sen. Carl Levin, who received $438,304 from the automotive industry. And in the House, Rep. Joe Knollenberg received $879,327. Rep. John Dingell got nearly a million from the industry. All have enjoyed generous support from the auto industry over their careers, with GM and Ford as their two top contributors. All support a bailout.

But nobody's been a bigger advocate for Motor City interests than Dingell. And for him, the stakes aren't just political, they're personal.

"There's an actual conflict," said Ryan Alexander of the nonprofit group Taxpayers for Common Sense. "His personal financial health, you know, the wealth of his family is tied up in the car industry."

Dingell's wife Debbie once worked as a lobbyist for GM.

When she married the congressman, she became a senior GM executive at an undisclosed salary. And we found the couple has extensive GM assets.

Dingell's current financial disclosure filed in May lists GM stock worth up to $350,000, options worth up to $1 million more, and a GM pension fund. In 2000, among the Dingells' GM assets were stock options worth up to $5 million.

And in 1998, the congressman reported selling GM stock options worth up to $1 million dollars.

Dingell wouldn't agree to an interview.

Taxpayer watchdog Alexander says the Dingell's personal ties to GM are something the public should know about when the congressman casts his votes.

"They stand to benefit if the company doesn't go under, if the company prospers," she said. "And they stand to lose a lot if the company goes bankrupt."

Nobody is placing bets on whether Congress will end up giving the car companies a bailout. But if investments in Washington politicians count as leverage, then the auto industry has plenty of clout.

[sero5]

The Ford Escape Hybrid that Ford CEO Alan Mullaly drove to DC is built in Kansas City, Missouri. Not India, China, or Mexico. If Congress uses our taxpayer money to bail out the Big 3, then every American citizen should get one free hybrid. Perks of "ownership" that the todays CEOs enjoy.

[drclark6]

The big three execs drove up to DC in Hybrids, does anyone know what country the Hybrids were built in? Mexico? China? India?

[txgrouch2007]

"GM sold the patent rights to the NiMH to Chevron, there was your proof."
What are you talking about. GM buy a NiMH battery right now and so do the other car companies and not from Chevron, they do not have the patent. Get your facts straight.
Posted by dhound3 at 01:42 PM : Dec 05, 2008

GM sold the key patents for its EV-1 electric car to Chevron. It sold the patents for USING the batteries in cars, not the batteries themselves (duh).

BTW, most of this technology was developed by Paul MacCready, who also built the Gossamer Condor man-powered airplane and the Solar Challenger solar-powered airplane. With technology like that, it''s going to be hard for GM to build a successfule electric or hybrid car without using these patents.

That is, very hard unless it wants to repeat about 10 years of R&D to develop a WHOLE NEW electric car that doesn''t use any of the patents that were sold to the oil companies.

Gee, what kind of royalties do you think Chevron would charge if GM wanted to use these patents...?

GM FED US TO THE WOLVES. NOW THEY WANT A BAILOUT.

[dhound3]

Lobbying list:

1) Finance companies (received bail-out)
2) Oil companies (Republicans love these guys)
3) Drug companies

Where is the CBS story on their lobbying?

[dhound3]

d7767w said:
"GM sold the patent rights to the NiMH to Chevron, there was your proof."
What are you talking about. GM buy a NiMH battery right now and so do the other car companies and not from Chevron, they do not have the patent. Get your facts straight.

[dhound3]

It seems CBS lost some commercial spots and money from GM pulling out of advertising, so now they are out to get them. Toyota, Honda, Ford, Chrysler all lobby and pay money, so why is this different. Most of the time they are lobbying to keep Congress from putting tarrifs on raw material coming into the US so there cars produced in the US can be cheaper (like magnesium, silicon, and other materials). The US tend to protect little US based produces of this material for some reason which drives up cost and allows them to hold the car companies hostage.

[pistol000]

I did not see Dingell or Levin''s political affiliation. If they we republican there would be a (R) next to their names and GOP mentioned throughout the story. Perhaps even a mention of Bush. So they must not be republicans...
CBS your credibility is GONE, please stick to your hard hitting brand of journalism and run a story on Obama''s favorite recipes. Leave the serious stuff to others. National Enquire has more esteem!

[pistol000]

I did not see Dingell or Levin''s political affiliation. If they we republican there would be a (R) next to their names and GOP mentioned throughout the story. Perhaps even a mention of Bush. So they must not be republicans...
CBS your credibility is GONE, please stick to your hard hitting brand of journalism and run a story on Obama''s favorite recipes. Leave the serious stuff to others. National Enquire has more esteem!

[joemainst]

So what is new about this. This is printed to kill the Domestic car industry. Putting a differ Standard on them than the Wall Street hand out recipients. Wall street feathered a few politians nests. Congress has enjoyed it with out complaint. Soon Pres. Obams wants to stop lobbying, but that won''t happen,its the nature of Washington. Power corrupts.

[ctla567]

D3 would be in a much better shape today if they hadn''t lobbied so hard against improving gas efficiency while Pres. Clinton was in office. D3 has lobbied against any improvement in car safety, pollution and fuel efficiency for years. Only now they verbally have agreed to improving fuel efficiency, six months from now it can be a different story. Their CEOs agreed to a $1 annual pay. But their pay will again be in the millions in no time at all regardless of whether or not their companies are profitable.

[kansas1946]

This situation speaks directly to the heart of the problem with lobbying. All of the politicians that have taken money from lobbiests for the auto industry, or have taken large sums of money for their campaigns from the automakers, are compromised when there is a vote such as this. Even if they feel in their heart of hearts that helping the industry is in the best interests of the American people, if they vote for it the perception is that they were bought. I think that any politician that took money from the industry should abstain in the vote. That may only leave three senators and six housemembers but at least their vote would be clean. It is impossible to get fair representation from our politicians as long as these huge amounts of money are comming from pacs and lobbiests.

[loulou1110]

I sent this to our US Reps and Senators by email. I STRONGLY urge you to do the same if you agree. The possibility of losing their Power Positions in D.C. is the only thing that makes these out-of-touch ELISTISTS politicians like REID/PELOSI listen.

Dear XXXXXXX,
I most strongly urge you to oppose any bailout for the auto industry. It is irresponsible and will not correct the problem: mainly, overinflated wages, benefits, and retiree plans. The "other" American auto industry is thriving with happy employees, efficient output, and quality products that American consumers are buying in record numbers. The Big Three are simply non-competitive in the global economy - or even in the domestic market! The Big Three will not disappear; they will either reorganize or be acquired by other automakers - there is simply too much brand value and infrastructure in place for them to disappear. But a bailout will only prolong their demise and cost us - and our children - billions. It is nothing more than pandering to the unions. Your support of a bailout will ensure my not supporting you in the next election and resolve me to work hard to see that you are replaced with someone who truly represents the desires of the majority. Please oppose any more bailouts for anyone!

[eagle_in_nyc]

Why is there no analysis of how much the unions, especially UAW, has contributed to the Democrats, nationally as well as in Michigan. The foreign-based, non-UAW car manufacturers in the United States (Honda, Toyota, Mercedes, et al) are NOT in the financial mess that the UAW Big Three Detroit companies are. The UAW has driven down the Big Three even more than Congress has.

[autobailout]

Protest the auto industry bailout. Sign the petition today.
http://www.autoindustrybailout.com/petition/

[andylance1]

GM & Ford have bought and paid for the politicians who they fully expect to bail their sorry butts out of bankruptcy. It is obvious who was bought, including Dodd, Casey, Byah and Schumer.

The hero of the day was Tennessee Senator Bob Corker
who said unless GM and Ford pay down their debt and reduce wages and benefits to a level equivalent to that of foreign automakers, they won''t survive past March 31st. Unlike the bought politicians on the Banking Committee, he does not believe in corporate welfare and thinks the auto industry should be run like a real business.

[firehose12]

Posted by MrNrgmizer:
Starting around 2010, new UAW workers will start at $14.00 per hour pay. Illegal and legal Mexican landscapers and construction workers can make around $18.00 per hour pay, believe it or don%u2019t.

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At leat the illegals work for it!

Posted by magbag8282 at 06:13 PM : Dec 04, 2008

So true !!

I would hire an illegal over a spoiled Prima Donna UAW Union loser any day of the week 24/7.

I would even buy them a shiney embroidered Jacket.

[riotgirrl-2009]

There is another "Big 3": the auto industry, the oil industry and the U.S. government. The U.S. should be getting away from dependence on foreign oil, rather than fighting wars for it. The auto industry, for all of its failings, is a handy scapegoat. Nobody blinks an eye when banks fail and the government steps in for its cut.

[magbag8282]

Posted by MrNrgmizer:
Starting around 2010, new UAW workers will start at $14.00 per hour pay. Illegal and legal Mexican landscapers and construction workers can make around $18.00 per hour pay, believe it or don%u2019t.

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At leat the illegals work for it!

[hermitdave]

How stupid can humans be? We pay for the Fox to guard our chickens, then wonder why we keep finding dead chickens.

[tincup356]

Democratic, Republican.....Both mean the same thing...White collar, suit and tie terrorists robbing the people that put them into office .Treason is the only thing it can be called.