December 5th, 2008
03:34 PM ET
6 years ago

President-elect's team weighing auto industry option

Obama and his advisers are studying options to help the struggling automotive industry.
Obama and his advisers are studying options to help the struggling automotive industry.

(CNN) – President-elect Barack Obama has kept a relatively low profile as automakers plead for billions from Congress, but behind the scenes, the incoming administration is working hard on finding ways to ease the crisis.

Obama and his advisers are studying options for helping the automobile industry beyond what Congress does or doesn't do before he steps into office.

Talks in Congress have included mention of a possible short-term loan for the auto giants to act as a Band-Aid until lawmakers can hammer out a long-term plan when the new Congress begins next year. Other lawmakers have suggested that bankruptcy could be a good thing for the automakers.

CEOs for the Big Three are trying to make their case for a $34 billion loan.

Despite what may happen in the coming weeks, there's no indication that the problem will be solved before Obama steps into office. While the president-elect has largely stayed silent on the issue, he has signaled that one option is off the table.

"We can't allow the auto industry simply to vanish," he said last week.

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Filed under: Candidate Barack Obama • Congress • Nancy Pelosi
soundoff (85 Responses)
  1. Eric in Texas

    First 25 billion, then 34 billion.

    And we are going to GIVE money to people that aren't able to use what they had the right way? That is a bit of retarded thinking. Then again, this is the government.

    But hey, I heard that a local pizza restaurant here had to close and 15 people are out of work. Maybe THEY should get a bailout. Let the Big Three file Chapter 11, stay in business, restructure and get competitive. But then again, this has all been a big dog and pony show. The government was going to bail them out from the beginning. They just wanted to look tough. Love Democrats, there as predictable as ever. Just look at the election!

    December 5, 2008 07:37 pm at 7:37 pm |
  2. Larry

    Who would be Obama's and the Dems biggest contributor if the unions fail,it's business as usual,they will get the money,and the tax payer will get a lot deeper into the socialism experiment,what happened to common since??

    December 5, 2008 07:43 pm at 7:43 pm |
  3. jackie ohio

    As a gm retiree, i'm 48 years old, i had to take a early retirement because my job was outdsoruced to mexico, the retirees deserve a govt. loan,. we are taxpayers too. think of all the taxes this corrupt govt, would lose if these jobs are lost, duuh, it's the economy stupid, and we desrerved are pensions and benefits, it's peanuts compared to what they got on the wallstreet bumout, give us our do, the workers and the retireees didn't make this mess, we just made the cars we were told to make, give the workers a break we deserve it, and we don't make 75 dollars/hour thats a darn lie, also the autoworkewrs leave there j0bs with all kinds of ailments, and illnesses,

    December 5, 2008 07:52 pm at 7:52 pm |
  4. Chad

    Oh Congress, I need a bailout too. A cool million is what I need to get myself going again. Please send me money.

    Why do we reward people for being idiots by bailing them out. Im all for the workers, but they dont need 90,000 per year to turn bolts.

    December 5, 2008 07:53 pm at 7:53 pm |
  5. Walt, Belton,TX

    It is all going to depend on how much they contributed to Obama's election.

    December 5, 2008 08:06 pm at 8:06 pm |
  6. sharon

    Let the Bank of America lend them the money..problem solved.

    December 5, 2008 08:07 pm at 8:07 pm |
  7. Mike

    Here we go. Billions transferred from the American Taxpayer to the United Auto Workers.

    December 5, 2008 08:07 pm at 8:07 pm |
  8. Paul

    The Dems are trying to sell the taxpayers another package to give billions to pay for the votes in the election and the news media is doing all they can to help sell it just as they did in the $700 billion sellout.

    December 5, 2008 08:10 pm at 8:10 pm |
  9. tired of lies

    america became great before cars were invented.

    December 5, 2008 08:15 pm at 8:15 pm |
  10. Ernie

    The party is over. America has been living beyond its means long enough. It's time to pay for our greed. Things will not get better. We have not seen anything yet. There will not be peace on Earth until the Prince of Peace returns.

    December 5, 2008 08:27 pm at 8:27 pm |
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