May 1: Chrysler's Future

“I conveyed to the president the importance of the auto industry to the U.S. defense industrial base and the economic vitality of Northern Ohio," Kaptur said. "This industry has been brought to its knees by the mess on Wall Street and deserves to be restructured and to flourish to meet the transportation needs of the 21st Century.”

Kaptur termed the administration’s plan to restructure the company “a very promising agreement.” She said it “avoids liquidation and gives our region the opportunity to be the crown jewel in the industry due to the tremendous goodwill of the Jeep brand.

“The President told us that he knows it will be a long road, and he thanked us for our patience. He said his task force had worked with all the stakeholders to avoid liquidation and give the company a chance not only to survive, but to thrive.

“The president acknowledged that we’re not out of the woods yet, because there will be a short bankruptcy for a portion of the debts. The United Auto Workers and major creditors agreed to the terms, but certain hedge funds were unwilling to make the necessary concessions.

“Chrysler will survive. Most important are the jobs saved. The company must shed liabilities and will emerge stronger. Health benefits will be protected.”

Kaptur said President Obama promised to dispatch an official from his auto task force to affected communities in coming weeks to help plan strategy.

Kaptur was joined in the conversation with President Obama by Senators Carl Levin and Debbie Stabenow of Michigan, along with several members of the Michigan delegation in the House of Representatives. Congresswoman Kaptur was the only Ohio member on the phone call.