Obama, in Ohio, Will Promote Auto Industry Rebound,Obama hits road to hail auto bailout:
WASHINGTON: US President Barack Obama on Friday makes his rescue of America’s iconic auto industry a driving force of his 2012 reelection bid and a repudiation of rising attacks on his economic leadership.
At a Chrysler Jeep plant in the electoral bellwether state of Ohio, Obama will argue that his high-risk decision to embrace an dollar 80 billion government bailout saved hundreds of thousands of jobs and rebooted an entire industry.
But his tour in Toledo may be overshadowed by the release of the latest set of jobless data which analysts expect to further fuel fears that the economic rebound – crucial to Obama’s hopes of a second term – is slowing.
With unemployment at 9.0 per cent, a slumbering housing market, and with many Americans yet to feel relief in their wallets, Obama’s arguments that the economy is on the move face strong headwinds.
So the White House is extra keen to highlight the success of the auto bailout.
“When the President took office, we had an automobile industry in absolute freefall,” said Ron Bloom, a counselor to the president on manufacturing.
“We had obviously an economy in great distress, but the automobile industry in some ways was falling faster than just about any other sector.
“The president faced very difficult decisions about what to do to deal with this critical part of the American economy.” Officials say the rescue of General Motors and Chrysler staved off a liquidation of firms that would have hammered the economy in fragile states and sparked widespread misery.
The industry has added 115,000 jobs since GM and Chrysler exited bankruptcy and, along with Ford, are now churning out profits and popular new energy efficient models.
Backdrops of cheering workers and packed assembly lines make great campaign fodder for the White House, especially in economically depressed areas of the country likely to play a key role in the 2012 election.
WASHINGTON: US President Barack Obama on Friday makes his rescue of America’s iconic auto industry a driving force of his 2012 reelection bid and a repudiation of rising attacks on his economic leadership.
At a Chrysler Jeep plant in the electoral bellwether state of Ohio, Obama will argue that his high-risk decision to embrace an dollar 80 billion government bailout saved hundreds of thousands of jobs and rebooted an entire industry.
But his tour in Toledo may be overshadowed by the release of the latest set of jobless data which analysts expect to further fuel fears that the economic rebound – crucial to Obama’s hopes of a second term – is slowing.
With unemployment at 9.0 per cent, a slumbering housing market, and with many Americans yet to feel relief in their wallets, Obama’s arguments that the economy is on the move face strong headwinds.
So the White House is extra keen to highlight the success of the auto bailout.
“When the President took office, we had an automobile industry in absolute freefall,” said Ron Bloom, a counselor to the president on manufacturing.
“We had obviously an economy in great distress, but the automobile industry in some ways was falling faster than just about any other sector.
“The president faced very difficult decisions about what to do to deal with this critical part of the American economy.” Officials say the rescue of General Motors and Chrysler staved off a liquidation of firms that would have hammered the economy in fragile states and sparked widespread misery.
The industry has added 115,000 jobs since GM and Chrysler exited bankruptcy and, along with Ford, are now churning out profits and popular new energy efficient models.
Backdrops of cheering workers and packed assembly lines make great campaign fodder for the White House, especially in economically depressed areas of the country likely to play a key role in the 2012 election.
By Dawn
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