U.S. Sen. David Vitter has come out in opposition to a $25 billion federal bailout for domestic automakers, saying it would only delay the need for the Big Three to restructure their operations to become more competitive.
A spokeswoman for U.S. Sen. Mary Landrieu said she is reviewing the proposal but has not decided where she stands on the bailout.
GM operates a truck- and SUV-assembly plant in Shreveport. It has eliminated one of its two production shifts due to lower demand for the vehicles it makes.
Vitter said that if the package is approved, Congress would find itself considering more money for the industry within six months.
Congress is tangling with the idea of the emergency package for General Motors, Ford and Chrysler.
Vitter, who also opposed the Wall Street bailout plan, called a bailout for the domestic auto industry an "ever-widening intrusion on the free market."
"No one wants to see these storied companies fail, but this $25 billion will actually guarantee their demise," Vitter said on the Senate floor. "With no real fundamental or substantive changes in these companies' organizational structure, Congress will be forced to revisit additional bailouts for automakers as early as six months from now."
The Associated Press contributed to this report
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