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

Article by Christian A., 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

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
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