The White House, meanwhile, took pains to clarify its position on the bailout, saying the administration "does not want US automakers to fail." Press secretary Dana Perino complained that reporting on the White House's statements on this issue has involved "attempts to shorthand the administration's position."
Perino's statement also made clear, however, that the administration steadfastly opposes drawing funds from the bailout plan to help Detroit. The White House opposes the idea of automakers getting an additional $25 billion.
The debate in Washington comes as the financial situation for General Motors Corp., Ford Motor Co. and Chrysler LLC grows more difficult.
"There's a high degree of urgency" for federal action if GM is going to stave off a financial crisis, Rick Wagoner, GM chairman and chief executive, said Sunday in a joint appearance with United Auto Workers President Ron Gettelfinger on WDIV-TV in Detroit.
In her statement Monday, Perino said, "The auto industry is an important part of our manufacturing base, and we want the industry to succeed and compete in the global economy." But she also said that media reports have erroneously depicted the administration as taking too harsh a stand on financial relief.
"We believe this assistance should come from the program created by Congress that was specifically designed to assist the automakers — from the $25 billion Department of Energy loan program," Perino said.
She said the $700 billion rescue program "was never intended by Congress to assist automakers or other sectors of the economy. It was solely intended to deal with what is an ongoing credit crisis in our financial sector." Perino also said that any new legislative effort to help the big carmakers should require that those manufacturers are viable companies, ones willing to restructure themselves for the long term.
President-elect Barack Obama said he believes aid for the auto industry is needed but that it should be provided as part of a long-term plan — not simply as a blank check.
"For the auto industry to completely collapse would be a disaster in this kind of environment," Obama said in a "60 Minutes" interview aired Sunday night on CBS. "So my hope is that over the course of the next week, between the White House and Congress, the discussions are shaped around providing assistance but making sure that that assistance is conditioned on labor, management, suppliers, lenders, all of the stakeholders coming together with a plan — what does a sustainable U.S. auto industry look like?"
(China Daily via Agencies November 18, 2008)
