Obama: The Automotive Industry Must Be Preserved

President Barack Obama has announced that his administration will present the new aid package for GM and Chrysler over the following days, but warned that the two manufacturers will have to make "pretty drastic changes" to save their industry, Associated Press reported, quoting an online meeting held on Thursday.

"We will provide them some help," Obama said. "I know that it is not popular to provide help to auto workers or to auto companies. But my job is to measure the costs of allowing these auto companies just to collapse versus us figuring out: can they come up with a viable plan?", adding "if they're not willing to make the changes and the restructurings that are necessary, then I'm not willing to have taxpayer money chase after bad money."

General Motors and Chrysler already received $17.4 billion in federal aid since December and asked in February for an additional $22 billion, required for the two manufacturers to get past the ongoing crisis.

Obama thinks the automotive industry must be preserved, not only because of its financial or symbolic value, but also because of the large number of people who are involved in this segment of the economy. As a result of this, all of the parties who are involved must do their part.

"Everybody is going to have to give a little bit -- shareholders, workers, creditors, suppliers, dealers -- everybody is going to have to recognize that the current model, economic model, of the U.S. auto industry is unsustainable. A lot of it's going to depend on their willingness to make some pretty drastic changes. And some of those are still going to be painful,"" Obama said.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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