By Mark F. SperlingThe National Automobile Dealers Association (NADA) announced today that the organization has voted to remove its support for the automakers’ plan to set a $5.2 trillion bailout to prop up the auto industry through the 2020s.NADA President Jim Cramer said the group was not supporting the auto bailout at this point because it is not a good idea.
“I think we have to be clear: I am not a member of NADA,” he said.
“I have not been invited to a meeting with any of the executives.
I have not spoken with any members of NIDA.”
Instead, Cramer wants automakers to be more transparent about their finances.
“The problem with this process is that we have no idea where all the money is going,” he told CNBC on Thursday.
“So the question is: What’s going to happen to the taxpayers, the companies, the people that have to pay for this bailout?”
He also urged the automakers to get rid of the idea of paying off debt through bankruptcy.
“There is a very good chance that if the companies don’t have to worry about that, they are going to be able to make more money and make more loans,” he added.
A spokeswoman for the auto group told CNBC that it was “not aware of any discussions between NADA and the auto manufacturers” on the issue.
“We support a path to a comprehensive financial settlement to support the automotive industry and will work with the industry to develop a fair, long-term solution that can be funded through debt service,” the spokeswoman said.
The decision by NADA came after automakers said they are willing to agree to the auto bailouts that Congress is considering.
However, the auto groups have so far rejected those proposals and are insisting on their own bailouts.CNBC is following the auto sector’s progress with the latest news, charts and analysis from CNBC and CNN.
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