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Obama tells Bush: help US motor industry now

Posted by Internet Guru
November 11, 2008


Barack Obama and George Bush at the White House. Photograph: Jim Watson/AFP/Getty Images

President insists opposition to Colombia trade agreement must be dropped in return for helping carmakers

President-elect Barack Obama urged George Bush to bail out the struggling US motor industry when the two men met at the White House, it was reported today.

According to the New York Times, President Bush responded that he might be able to offer financial aid if the Democrats dropped their opposition to a free-trade agreement with Colombia.

The paper says that as Obama opposes the Colombia pact because of the country’s human rights abuses against unionists, he may decide to wait until he is inaugurated as president on January 20 rather than concede on the trade agreement.

However, the White House

today issued a statement saying Bush would strongly consider providing bail-out funds to the ailing industry.

Obama has already made clear that he believes the motor industry needs help to prevent huge job losses. Yesterday, shares in America’s largest carmaker, General Motors, plunged to a 62-year low amid warnings that it is facing bankruptcy.

The Centre for Automotive Research in Chicago has produced analysis suggesting that 3m jobs would be at risk if GM and the two other big US carmakers, Ford and Chrysler, collapsed.

The Bush administration said previously that the motor industry was not entitled to a share of the $700bn (£449) bail-out fund but Obama and the Democrats say the law allows the fund to be extended beyond banks and financial companies.

Congressional Democrats asked the treasury secretary, Henry Paulson, in a letter on Saturday to consider aid to the motor industry through the bail-out fund.

It was reported today that congressional Democrats had already begun drafting legislation to give the carmakers quick access to $25bn from the fund.

Guardian

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