Sherman, who had previously balked at offering the ailing auto industry a financial lifeline, appeared more resolved to voting for the aid package after meeting with representatives from the auto companies.
Appearing Thursday on CNBC, Sherman said, “I am more impressed” after meeting with representatives from GM, Ford and Chrysler on Nov. 19.
“I think it’s very important to say not just ‘We like your plan, here’s $25 billion,’ but rather ‘We have your money, you have to live by our rules,’” Sherman said.
Sherman’s questions, according to his office, included:
Will the car companies also receive bailouts from nations where they produce and manufacture cars, such as in China, Europe, Mexico and Canada?
Will federal funds ensure that each company can survive 2009, based on realistic expectations of difficult economic conditions in the upcoming year?
Do the plans limit total compensation packages to $1 million per year?
According to a release, Ford President Alan Mulally said his company is in talks with the Canadian government and revealed that Ford has already “received substantial support from the Mexican government for locating manufacturing facilities in Mexico.”
Chrysler Chairman Robert Nardelli told Sherman that the European Union is considering a $50-billion aid package for its auto industry, and Australia, “a country without domestic auto manufacturers, has announced support for the industry,” he said.
As to executive compensation, GM Chief Executive Rick Wagoner said his company “understands and accepts that all stakeholders need to share in the sacrifices required for the company to attain long-term viability.”