Although the Bush administration rejected Detroit’s plea for more low-interest loans for the auto industry, President-elect Barack Obama has supported the idea of a relief package throughout his campaign. Obama hasn’t changed his tune since his November 4th victory, addressing the need for more industry loans in his first television interview as President-elect.
In the TV interview, Obama revealed that he has already charged his advisory team with finding more options for helping the auto industry. Although Obama didn’t go into the details of his plans, he did call the auto industry “the backbone of American manufacturing.”
The issue of economic aid for the auto industry could be addressed during Congress’ lame duck session — slated to begin on November 17th – but Obama vowed the matter would take top priority in his new administration if it was not resolved in Congress.
Twenty-five billion dollars in economic funded has already been allocated to the auto industry, but that money is to be used exclusively for the development of fuel efficient vehicles. As seen by today’s headlines, the industry clearly needs additional aid just to survive the current economic downturn.
