July 30th, 2010
03:11 PM ET
12 years ago

Obama says U.S. auto industry 'growing strong' after bailout

ALT TEXT

President Obama speaks at a Chrysler plant in Detroit, Michigan on Friday. (PHOTO CREDIT: Getty Images/AFP)

Detroit, Michigan (CNN) - President Barack Obama, speaking at a Chrysler plant here Friday, praised the recovery of the embattled U.S. auto industry and celebrated the tough choices he says made a comeback possible.

"Last year, many thought this industry would keep losing jobs, as it had for the better part of the past decade. Today, U.S. automakers have added more than 55,000 jobs since last June," said Obama.

He said both Chrysler Group LLC and General Motors Corp. have rebounded from the depths of their government-brokered bankruptcies and are back on track to grow.


Obama was scheduled to tour a GM plant later in the day, where he will also likely make the case for why the federal government's investment in the auto industry was a wise move.

In the 12 months before he took office, he said the U.S. auto industry had lost hundreds of thousands of jobs and had seen its sales drop 40 percent.

Obama cited estimates that suggest more than 1 million people would have lost their jobs if Chrysler and GM, two of the three big U.S. automakers, had been allowed to liquidate.

Ford Motor Co. was the only one of the so-called "Big 3" that did not take a government bailout.

"Today, this industry is growing strong. It's creating new jobs. It's manufacturing the fuel-efficient cars and trucks that will carry us toward an energy independent future," said Obama.


Filed under: Auto Bailout • issues • Michigan • President Obama
soundoff (79 Responses)
  1. OBOZO'S RECORD DEFICITS

    Sure BOZO....

    You bail them out with Tax Payer $$$, charge no interests, protection union jobs at the expense of others.

    It's easy when you use OPM (Other Peoples Money).

    Now, look at the DEBT you have created and all the new TAXES.

    No matter how you try to sugar coat a pile of manure, it still is manure.

    July 30, 2010 02:17 pm at 2:17 pm |
  2. Ric

    What a clown. Odumbo spends trillions bailing out the unions while the rest of the economy suffers. All politics so he can hold union loyalty for 2012. To bad he is going tolose anyway after his horrific and plain racist behavior as president.

    Obama is a disgrace to our nation and should be removed from office!

    July 30, 2010 02:20 pm at 2:20 pm |
  3. Anonymous

    The LOAN- all money was repaid, so they were loans- kept Americans in jobs, helped the cities they were in and all of the parts employees working and hvae given a boost to what appears to be a resurgence in American car companies.
    Are there STILL people out there that say ti was wrong?
    The government did its job – at a profit!

    July 30, 2010 02:21 pm at 2:21 pm |
  4. Naqib

    Funny.... Ford is doing just as well as the rest without taking money... without throwing a trillion US tax dollars down the toilet....

    Your bailout did nothing but increase debt.... the companies would have made it... just like Ford did...

    July 30, 2010 02:22 pm at 2:22 pm |
  5. Obamalot

    What a joke. Does he really believe his own BS?? $$60,000,000,000 and 55,000 jobs. Thats a little more than one million per person, I would have just rather had the payoff, HAHA!

    July 30, 2010 02:24 pm at 2:24 pm |
  6. jim

    You have to look at the world through the eyes of Obama. If you don't have the facts to back up what you say you just make stuff up and then hope nobody will check what you say.Exactly how is it that FORD was able to make it through these tough times and GM and Chrysler needed to be bailed out to survive.How many jobs were lost to dealership closings that the government said had to be shut down even thouugh that turns out to be unfounded?And how much taxpayers money was lost that will never be repaid !!!

    July 30, 2010 02:30 pm at 2:30 pm |
  7. George of the jungle

    Good job Mr. President.

    July 30, 2010 02:33 pm at 2:33 pm |
  8. john

    Let everyone who works in the auto industry in any capacity remember what their fate would have been had it been left to the tender mercies of the Republican party.

    July 30, 2010 02:33 pm at 2:33 pm |
  9. Gerald

    It would have been more impressive if he had said that out of the 12,546,783 jobs projected to be lost in the auto industry, we actually lost only 11, 325,679, thus saving 1,221,104 jobs as a result of the auto industry bailouts. You see – figures don't lie, but liars can figure.

    July 30, 2010 02:34 pm at 2:34 pm |
  10. Four and The Door

    Obama is trying to justify the $50 billion he spent bailing out GM and Chrysler?!?! On 55 thousand jobs, probably most of which were created by Ford who did not take the Federal money?!?! Did he pull out his calculator and realize that these jobs cost $1 million each? I would expect him to stay as far away from this decision as possible, but since he's the one who brought it up....

    July 30, 2010 02:35 pm at 2:35 pm |
  11. ToldUSo

    So once again big businesses and corporations are saved and the average small businesses are told to go away.

    Yet it seems the morons here believe Republicans are in the tank for big businesses and big corporations. Didn't the Dems pass legislation to save big businesses and big corporation should they get in Financial trouble? It under the "too big to fail" umbrella. Ask yourselves why?

    Hint: not b/c of people loosing their jobs.

    Give up?

    Answer: UNIONS!

    Don't believe? Investigate who won big time (UNIONS), and who were the losers (taxpayers ie u & me) in the auto bailout.

    Now it is law that the Federal Govt can do this type of action w/o Congress's Approval. Read the "Financial Regulation Bill". It is a law for the UNIONS.

    July 30, 2010 02:35 pm at 2:35 pm |
  12. J-wowww

    If you belive that I have a nice health plan I would like to sell you too.....Oh wait, he did. How about that finance reform Law?? Now the SEC is immune to FOIA requests. Must be more of that transparency we used to hear about...........and you lib fools see nothing wrong. Must be Bush's fault!! HAHAHAHAHA!

    July 30, 2010 02:35 pm at 2:35 pm |
  13. Marcus

    But the spin-driven conservatives will say that, 'actually', the government's interference harmed the auto industry...
    And this will start in 5... 4... 3... 2... 1...

    July 30, 2010 02:40 pm at 2:40 pm |
  14. vic

    I was against for auto bail out I was wrong

    July 30, 2010 02:40 pm at 2:40 pm |
  15. seebofubar

    This guy is such a pathetic lier. Only an idiot would believe anything this moron says, only an idiot or a democrat (although they may be one in the same). How in God's name did you nimrods get fooled into voting for this slime bag?

    July 30, 2010 02:47 pm at 2:47 pm |
  16. thor

    Yeah! that's right GM is going to make a lot of money off the new Volt. At a price of 41,500 and 8 year battery life there's a large market for this vehicle.I believe there's going to be more than a few sitting in the showrooms after the initial novelity wears off.I mean with the economy looking as bad as it is and no sign that there's going to be significant improvement.,whose got that kind of money to spend.Certainly not Mr Average American !!!

    July 30, 2010 02:49 pm at 2:49 pm |
  17. Simon/Orlando

    The only thing that's growing strong are the unions. It's a payback for all the campaign contributions. You can't make cars in strong union states and survive. Eventually they will fold.

    July 30, 2010 02:49 pm at 2:49 pm |
  18. ken

    What he ment to say was the Detroit Auto Unions are sitting fat now that they have a direct line into the tax payers pocket.

    July 30, 2010 02:52 pm at 2:52 pm |
  19. NYCitizen

    It is??? I am just waiting for a brand new car that won't cost the middle to low income people the equivalent of a downpayment on a house! The cost of brand new cars are ridiculous and leave middle income and low income people no choice but to purchase used cars that really don't last that long.

    July 30, 2010 02:58 pm at 2:58 pm |
  20. NVa Native

    If you review all the facts and data everything is getting better – economically and socially. It would get even better if only we could tar and feather the "hate America" crowd. The Repubs and their toadies (tteabaggers) keep preaching hate and fear while running in circles is what has been holding us all back.
    It's time to increase the number of Democratic politicians in our Congress and throw out the regressives (GOPers). November can't come soon enough.

    July 30, 2010 02:59 pm at 2:59 pm |
  21. phoenix86

    Obama screwed over Chrysler creditors and gave GM to his union political backers. Both still have taxpayer guarantees.

    I wonder if Obama was born a pathalogical liar or if it is a learned trait.

    July 30, 2010 03:01 pm at 3:01 pm |
  22. Scottish Mama

    They are in the process of tearing down the Chrysler building in fenton, Missouri this week. What relief has the Chrysler/Dahmler given Missouri? No sparks for Missouri.

    July 30, 2010 03:02 pm at 3:02 pm |
  23. Dave

    I bet it is easy to turn a profit when you are getting billions of dollars in tax supported subsidies! Let's not forget the auto bailout!!!!

    July 30, 2010 03:02 pm at 3:02 pm |
  24. Steve (the real one)

    Exactly and who is who is leading the way and surprising economists by making a profit? FORD! Oh wait, they rejected the bailout, didn't they. Never mind!

    July 30, 2010 03:06 pm at 3:06 pm |
  25. awaitingliberalizationbyCNN

    The companies would have survived anyway, just reorganized like they still should be, we just wasted $60 billion dollars on extravagent union benefits. This inept, corrupt, union toady, president is just such a liar. Eventually, they will be back, union greed knows no end. What about that UAW golf course for union excecutives that was saved as part of the bailout? No menion of that was there. Phony, liberals stealing our money.

    July 30, 2010 03:15 pm at 3:15 pm |
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