Obama says government’s aid to U.S. automakers “paid off” in saving the industry

Article by Christian Andrei, on October 17, 2011

President Barack Obama visited General Motors Co.’s Orion assembly plant together with South Korean President Lee Myung-bak to showcase a free trade agreement that the Congress approved this week. Obama also moved to defend a federal "investment" that assisted GM and Chrysler LLC to reorganize under bankruptcy in 2009.

Obama told GM workers there that the government's aid to U.S. car companies "paid off" in rescuing the U.S. automotive industry and in adding jobs. He went on to add that the cars that are being assembled at this plant are “a testimony to the American spirit."

Meanwhile, Lee assured workers at the plant that the free trade agreement doesn’t mean that jobs will move overseas and that instead, jobs will be created for them and their families. This deal gives a wider access to GM, Ford Motor Co. and Chrysler Group LLC into the Korean market while guarding the U.S. industry against a flood of imports from Hyundai Motor Co. and Kia Motors Corp.

The congressional approval of the deal on Oct. 12 is a significant event for Obama since it resolved a four-year-old issue. Obama will be up for-reelection in 2012 and points against him include unemployment being fixed at 9.1% nationwide and 11.2% in Michigan. It also marks the rare coming together of bipartisan groups on a deal that raises the prospects of new jobs in a beat-up industry.

Matt Grossmann, assistant professor of political science at Michigan State University in East Lansing, said that there have been plenty of policies that have aided the auto industry, including the GM-Chrysler bankruptcy bailout and the electric-car battery plants. [source: Bloomberg]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries