Obama on Leno: Talking Auto Industry
By Michelle Krebs March 20, 2009By Michelle Krebs
President Obama didn't spend much time during his historic appearance on The Tonight Show
talking about the auto industry to car-crazed host Jay Leno. But what he did say made it sound like he understood that new-car sales are simply too low for the industry to be successful.
President Obama noted that the U.S. car sales are running at an annual rate of 9 million vehicles, well below even the usual rate of replacement for worn-out vehicles, and that 14 million new cars a year would be more normal.
When Leno asked what consumers should do, Obama responded that Americans who have jobs should be prudent but not stop spending completely.
"We've still got kids who are going to need a coat for winter or a computer for school. You know, that young family is still going to at some point need to buy a house," Obama said, adding that people have put off buying cars and they will start buying them again.
Obama spent the earlier part of the day before his television appearance giving a speech at Southern California Edison Co.'s Electric Vehicle Technical Center, which is using Ford Escape Hybrids, where he announced a $2.4-billion stimulus package for hybrids. Details of Obama's California visit are available on Edmunds.com's Green Car Advisor.
On The Tonight Show, Obama reiterated his plan invest "billions of dollars" in research and development of advanced propulsion technologies like U.S. development of batteries, hybrids and such.
Leno, whose vast car collection consumes massive warehouse space in Burbank, California, reminded Obama that he was among the volunteers to test a Chevrolet Equinox from General Motors that runs on hydrogen-powered fuel cells. Indeed, Obama responded, a vehicle like Leno's Equinox is "going to create the auto industry of the future.
"That's where we're going to win back manufacturing," he said. "But right now we're behind. These batteries are being made in Japan -- just like wind power is being made in Europe. We need to bring that here, and that's part of what my budget and part of what our Recovery Act is all about."
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