It was being said that if Barack Obama wins the U.S. presidential election, he would enter the White House during the most difficult period in America’s financial history. However, this would not deter him anymore, as the reality is that he won and became the new president of the U.S. It seems that the U.S auto industry might have played a vital role in electing their new prez, since Obama’s victory has been strongly endorsed by the struggling industry.

It has been expected that Obama’s victory would help the automakers to seek federal aid in order to survive the recession. In a very effective speech Obama said, “We started the auto industry. It was built on the middle class; it was the core of our manufacturing base for decades. So we cannot just say we are going to wash our hands of the auto industry. I know we can compete, we have got great workers there, the auto industry is going to have to restructure. I have been saying for a long time that you have got to be competitive and the government can help.”

Obama has already voted for $25 billion in low-interest federal loans as a senator this year, in order to help the automakers to build more fuel-efficient vehicles. He also promised to help the Detroit Big 3, Ford, General Motors and Chrysler, with an additional $25 billion in federal aid.

Separately, General Motors is also in the running to seek federal government help to complete a merger with Chrysler LLC. And this aid may come in several forms, such as an acceleration of the approved $25 billion in industry loans or by participation of GM and its finance company, GMAC in the $700 billion federal bailout of the U.S. financial industry.

GM said it welcomes Obama’s “pledge to support our nation’s domestic auto industry in its ongoing efforts to transform its business and develop new technologies.”

“This support comes at an especially critical time as our industry confronts one of the most difficult economic periods in our nation’s history, caused by the global financial crisis,” GM stated. “And this support will enable a competitive U.S. industry to contribute significantly to our nation’s economic revival, in employment, technology, energy security and other important areas.”

The American United Auto Workers union, which has backed Obama throughout his campaign, welcomed his presidential victory and UAW president, Ron Gettelfinge said, “As our retirement savings plummet and we struggle to pay our bills, UAW members and our families are deeply concerned about where our country is headed.”

“President-elect Obama understands the importance of manufacturing and what’s good for jobs and the economy overall,” said association President John Engler, a former Republican governor of Michigan.
Engler also said Obama “has opposed unfair trade policies that have disadvantaged U.S. manufacturers and expressed support for key issues that are important for jobs creation, including trade, energy and work force training.”

This entry was posted on Friday, November 7th, 2008 at 5:25 am and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.