Auto Task Force under Fire
DOBBS: Harsh criticism tonight aimed at the government task force that oversees the ailing automobile industry. Billions of taxpayer dollars have been spent, and yet General Motors and Chrysler are closing more and more plants. Has the task force been effective or has it only succeeded in spending your taxpayer dollars? Bill Tucker has our report.</s>BILL TUCKER, CNN CORRESPONDENT (voice-over): We know the why.</s>REP. THADDEUS MCCOTTER (R), MICHIGAN: We know the critical component of our economy is manufacturing. And we know that that manufacturing economy is premised upon the domestic auto industry.</s>SEN. DEBBIE STABENOW (D), MICHIGAN: We created this industry. And it's incredibly important that we do everything possible to keep it strong and viable.</s>TUCKER: But some who strongly support the bailout are critical of the treasury's auto task force and its efforts to keep the industry strong.</s>SCOTT PAUL, ALLIANCE OF AMER. MANUFACTURERS: There's too much Wall Street and not enough Main Street in the auto task force. You have members of the auto task force who have spent the majority of their careers either in classrooms or dealing with Wall Street bankers and not dealing with the real economy on Main Street and on the factory floor.</s>TUCKER: The question is, are we saving an industry? See it shrink here and produce more elsewhere? So far taxpayers have committed more than $30 billion to automakers, a number that is certain to increase by everyone's expectations. In return, GM is talking about importing cars from its plants in Korea, China, and Mexico. And Warren (ph) said a bankruptcy filing at the beginning of June is looking ever more likely. Chrysler, already in bankruptcy, and announcing it will close a quarter of all its dealerships. One of the initial critics of the industry bailout admits it looks ugly and says government really shouldn't be involved but...</s>SEN. BOB CORKER (R), TENNESSEE: The task force, even though they shouldn't be doing what they're doing through government, is doing some things. They are doing some things, excuse me that are very beneficial to causing these companies to be healthy into the future.</s>TUCKER: A sentiment that is shared by a longtime industry analyst.</s>GEORGE MEGLIANO, IHS GLOBAL INSIGHT: At the end of the day, this money is well spent. We'll be spending more money if they walked in to court and this dragged on for a long period of time.</s>TUCKER: So oddly enough the prevailing opinion seems to be that what taxpayers have bought with these $30.6 billion is a more orderly process, and Lou, it's one that everyone feels staved off certain insolvency at Chrysler.</s>DOBBS: How many jobs have been lost? How many more jobs will be lost and what has $30 billion bought the American taxpayer?</s>TUCKER: A more orderly process -- a process...</s>DOBBS: An orderly process?</s>TUCKER: Well people say...</s>DOBBS: An orderly process?</s>TUCKER: Well...</s>DOBBS: Thirty billion dollars worth of orderly? All right, Bill Tucker, thank you very much. Other stories we're following across the country tonight -- new details about the deadly plane crash in Buffalo. Hearings on Capitol Hill have revealed just how much Colgan Air is paying its pilots. Copilots making around $24,000 a year; their pilots make about $67,000 a year. One airline expert says those salaries force pilots to live far from their base of operations and require long commutes as a result. Transportation officials say fatigue may have been a factor in the crash that killed 50 people in February. Pharmaceutical giant Pfizer today announced a new free prescription drug program for people who have lost their jobs. People who have lost their jobs this year and have been using a Pfizer drug for at least three months qualify for the program -- Pfizer offering 70 of its drugs in the program, including Viagra and Lipitor for up to a year. In Charlotte, Olympic gold medallist Michael Phelps will swim in his first race since his three-month suspension ended. USA swimming suspended Phelps after a photo was published showing him apparently smoking marijuana. Phelps is scheduled to swim in five events starting tomorrow. New controversy over Speaker Nancy Pelosi after a tense news conference today on Capitol Hill and a new swine flu outbreak in New York City; what it could mean for the entire country.