President-Elect Obama Promises Help for the Auto Industry
By Michelle Krebs November 7, 2008By Michelle Krebs
CHICAGO -- In his first press conference, President-Elect Barack Obama pledged help for the U.S. auto industry, calling it the nation's "backbone of manufacturing." He vowed to "act swiftly to confront the greatest economic challenge of our lifetime."
Largely focusing on the economy and having clearly been briefed on the ripple effects of the auto industry, Obama promised "to help the auto industry adjust" to a changing environment. He urged the speed up of already-allocated funds for development of fuel-efficient vehicles, an exploration of what other ways the government could help the industry under existing laws and consideration of new ways to help the industry.
Careful to repeatedly point out that President Bush remains the commander in chief til his inauguration, Obama said the economy is at the top of his to-do list, most importantly help for the middle class, including an economic stimulus package and an extension of unemployment benefits, and help for small business.
Obama said the distribution of the already-allocated $25 billion under last year's energy act for helping the auto industry produce more fuel-efficient vehicles needs to hasten. The rules for applying for those funds were released Thursday; they had not been expected until next spring. The funds could begin to be distributed by year-end.
The President-Elect's news conference Friday followed his first meeting with his economic advisory team, an august array of respected economists and financial types who stood behind him during the conference.
As he talked about the auto industry, Obama noted an important voice on his team is that of Michigan Gov. Jennifer Granholm. Originally campaigning for Hillary Clinton, the Democratic governor quickly backed Obama after his nomination. She acted as a stand-in for vice presidential candidate Sarah Palin in Vice President-Elect Joe Biden's practice sessions for the debate. Granholm is widely expected to be appointed to Obama's team, possibly as secretary of the Department of Energy.
Obama's first news conference also came the same day that General Motors and Ford announced third-quarter operating losses totaling nearly $7 billion, cash reserves rapidly being depleted and new rounds of cost-cutting, including elimination of more jobs. Also Friday, new unemployment figures were released showing the jobless rate at its highest level in 14 years.
Only Thursday, the chief executives of GM, Ford and Chrysler as well as the head of the UAW met with a Congressional delegation headed by House Speaker Nancy Pelosi to explain the industry's dire circumstances and plea for access to $25 billion of proposed bridge loans to help automakers until the credit crunch eases.
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