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. snow

    Boy how the bull does fly. nobummer said GM had paid back their loan but that was a lie.

    July 30, 2010 03:19 pm at 3:19 pm |
  2. Phoenix 1086

    Dominican mama 4 Obama July 30th, 2010 12:37 pm ET

    Hey, look, another poll! Aren't they nice, though they don't accomplish squat.

    Meanwhile, we have a hero in the person of Mr. Weine (D) NY. If you missed his on point tirade in Congress against Rethuglikkklans OPPOSING healthcare for the 9/11 rescuers, you need to watch it on video.

    Mr. Weiner you were so right to be angry, and fed up withe the CONSTANT and UNJUSTIFIED opposition from Republicans to ANY bill that is proposed. You were right in calling out their stall tactics based on "procedures", You were right in pointing out that even if the 'procedures' were different they would still ultimately vote 'No'. And I support the vehement way you expressed yourself.

    The Republicans, ladies and gentlemen, in case you missed it do not want the HEROES of 9/11 to obtain healthcare through this bill. These are the same heroes that they touted, and used to incite us into war againsyt an innocent country. This is the way the Rethugs will treat you after they have USED their servicemen and women in wars, and emergency personnel here at home. They are bloodsucking, lying, opportunistic users.

    You better wake the hell up America!
    ___________________________________
    Tell us all what else was in the bill Ms. Momma, do you know? Do you think that it was possibly opposed as the coffers are dry and the GOP is forcing the Dems to Pay as you go? Your racial rhetoric of calling the Republicans KKK grows tiresome, from what we've been subjected to so far I wouldn't let Obama pass gas without reading his underwear label...there would be some hidden surprise in it for sure and it would like the rest of the crap being passed undoubtedly stink!

    July 30, 2010 03:20 pm at 3:20 pm |
  3. phoenix86

    Last night in the House, a bill to provide $7.4 billion in funding over 10 years to those whose health was affected by the World Trade Center attack got 255 votes–well above a simple majority. But the bill failed because Democrats suspended the rules, which denied the Republicans the chance to offer any amendments and required a 2/3 majority to pass. According to Hill sources, Democrats suspended the rules because they were afraid that REPUBULICANS WOULD OFFER A MOTION TO RECOMMITT – the one amendment allotted to the minority party by the rules–TO PAY FOR THE BILL USING MONEY FROM OBAMACARE OR THE STIMULUS.

    Just curious if CNN will ever get back to reporting the news.

    July 30, 2010 03:21 pm at 3:21 pm |
  4. Orlando Patriot

    Let me see if I get this straight. The government takes over General Motors, tells the bondholders to "go fly a kite", give control to the unions, THEN proceed to give them BILLIONS of dollars and you are calling this a success? Now you force Government Motors (oops, I mean General Motors) to put their ENTIRE future into an electric car (the Chevy Volt) that is so NOT wanted you have to subsidize and offer $7500 to try and entice someone to buy it? and you call that a success?

    I tell you what: When a Community Organizer who has never run ANYTHING in his life tells you how to run your business then RUN AWAY FROM HIM AS FAST AS YOU CAN!! Government Motors (err, sorry did it again – I mean General Motors) is now destined to failure because the government is now telling them what their business plan is but we will quickly see that what the government wants you to buy is NOT WHAT THE PEOPLE WANT!! Therefore Government Motors (who am I kidding, it will continue to be Government Motors) is destined for failure and within 5 years the people will be told that it has failed but they can't figure out why. DUH!! When government runs the business then you might as well plan on being OUT OF BUSINESS!!

    July 30, 2010 03:22 pm at 3:22 pm |
  5. Victim of GOP Taliban

    All the lunatic brain-washed Fox News folks still are delusional and believe that Obama nationalized the Big 3. They don't even know what nationalization or government take-out even means. Obama is right yet again and the rightie wing-nuts are just plain wrong. Amazing turnaround for the Big 3.

    July 30, 2010 03:22 pm at 3:22 pm |
  6. Richard

    Way to go Mr. President, thanks to your leadership america will stand up again as a great nation!

    July 30, 2010 03:25 pm at 3:25 pm |
  7. C

    Thank God for common sense Democrats that saved auto and not just Wall Street. Party of NO must GO! Hell the people that are benefiting from the auto bailout are the ones who flipped the bill, why not, can you say that about greedy Wall Street??

    July 30, 2010 03:25 pm at 3:25 pm |
  8. Malt

    The industry would have grown without help. Failing companies would have been purchased by investors and other companies. Bailing out companies with failing business practices (union workers, huge pensions, no new ideas, out of date products...) will never strengthen the economy.

    Even my company would grow with the infusion of taxpayer money... that apparently is being paid back with 'stimulus' money instead of company profits (hit the taxpayer twice–and never get paid back).

    That said, I'm glad that the auto groups are still in business.

    July 30, 2010 03:27 pm at 3:27 pm |
  9. Donkey Party

    The right-wingers will HATE this news.

    July 30, 2010 03:29 pm at 3:29 pm |
  10. D. Bunker

    Before you teatards and GOBPbaggers start your mindless screams about "socialism" and "government takeover" talk to some people in Michigan. The auto companies are doing far better than expected (profits now instead of red ink) and jobs have been saved.

    Score:

    Dems 1
    Anti-American Republicans: 0

    July 30, 2010 03:30 pm at 3:30 pm |
  11. valwayne

    Is he out of his mind? The Auto industry in American is hardly strong, and certainly not for bailed out GM and Chrysler. I wish Obama would stop telling us things that are so obviously not true!!!!!

    July 30, 2010 03:31 pm at 3:31 pm |
  12. Dominican mama 4 Obama

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

    I'm in the auto industry and it most certainly is growing strong. Our sales numbers are now comparable to pre-recession numbers again for this time of year, and our service department's numbers have been climbing in leaps and bounds.

    As an interesting aside, I had to laugh to keep from crying when I read many posts from people complaining that the President appeared on The View as opposed to speaking to the Boy Scouts Of America!!!
    Does anyone else besides me remember that SHAMEFULLY EMBARRASSING day last year when our President's broadcast to school children was BLOCKED from a lot of schools due to the "parent's" outcry that the big bad black muslim was going to indoctrinate their children??????!! DOES ANYONE ELSE REMEMBER THAT? Then how in the HELL can you 'fix your mouth' to complain that he should've been addressing the BOY SCOUTS?

    These are the types of instances, and believe me there are TOO MANY TO COUNT, that shows some of you people's true motives in opposing this President. If you did not want him to address school children, why would you demand that he address the Boy Scouts? Bunch of freaking braindead hypocrites.

    July 30, 2010 03:32 pm at 3:32 pm |
  13. Hammerer

    What a joke!
    Millions of investors lost billoins of dollars on GM and Chrysler stock in the bankruptcy deals, taxpayers lost billions in the bailouts and thousands of workers were laidoff.
    Now obama says are adding 55,000 jobs that are really workers returning to government subsidized jobs. GM is starting to turn the corner on growth. He made no mention of the billions lost by taxpayers and investors because that money is lost forever. This claim is more of the same smoke and mirrors that obama and the media has tried to sell since day one.

    July 30, 2010 03:36 pm at 3:36 pm |
  14. wycliffe

    may the republican apologize for their criticism of POTUS on his courageous act of bailing the auto industry. I am pretty sure if the bailout failed they will drum it all the way to November elections. The republican option was to do nothing

    July 30, 2010 03:41 pm at 3:41 pm |
  15. Dutch/Bad Newz, VA

    People may have not liked the auto bailout, but it worked for the better. Now we need to look forward to which automaker to saboutage next. We've got Toyota out of the picture. Nissan looks like a good target.

    July 30, 2010 03:43 pm at 3:43 pm |
  16. BobH

    The auto industry bailout was actually an amazing success. It allowed them to restructure without going into bankruptcy, and now their on the verge of paying all of the bailout money back. They've emerged far healthier than they were.

    I do wonder where the apology is from the Republicans who predicted that the government "takeover" of the companies would doom them, and said that it would be better if they were allowed to go under.

    July 30, 2010 03:44 pm at 3:44 pm |
  17. floridian

    It's amazing that Ford, the only one of the three that did not take $$ in the bailout (union handout), has surpassed expectations in the past two quarters. They did it the hard way, they earned it.

    You know, you can use statistics to make anything look good. How many of those 55,000 jobs belong to Ford? Is the President counting only jobs at GM and Chrysler in those 55,000, or does it include Ford and the companies that support/supply the three. Does any one know or want to reveal how GM and Chrysler are doing against the measures of merit (performance goals) established when they accepted the $$? Or, were goals even established?

    Lastly, how do the 55,000 measure against what was anticipated in the way of expected job growth? More, less, or about what was expected?

    July 30, 2010 03:53 pm at 3:53 pm |
  18. Chuck Anaheim, Ca

    Thanks president Obama for saving MY job. I do not even work for one of the bailed out companies, I work for a Ford dealer. the damage that would have been done to the entire industry would have been fatal when the suppliers of parts went BK had GM and Chrysler failed. Many of the critics failed to look at the ENTIRE picture, the picture of the company that makes parts for GM also made parts for Toyota, Chrysler, Ford and many others. Kill of two of those companies big contracts and they fail too. Betcha the fools that whined so loud about killing two major AMERICAN companies would have been pretty upset when their (fill int the car brand) did not have spare parts to make it run for a couple of years.

    July 30, 2010 03:54 pm at 3:54 pm |
  19. Peter s

    What a visionary leader! this guy is amazing he has done more than what Bush and his clonies did in EIGHT CLUEL YEARS!

    July 30, 2010 03:59 pm at 3:59 pm |
  20. Dennis

    Are we talking about ford, GM and Chrysler? Is he kidding?

    July 30, 2010 04:00 pm at 4:00 pm |
  21. Peter s

    Where are the Nay-sayers who doubted bailing the auto industry? Rush, hannity and co? any more right wing spins?.

    July 30, 2010 04:02 pm at 4:02 pm |
  22. JES

    Obama how many of GM shares do the tax payers own.

    Lets cash them in and pay some debt down

    I forgot we can't do that they would go under.

    You are so full of it.

    July 30, 2010 04:06 pm at 4:06 pm |
  23. Dutch/Bad Newz, VA

    @ Phoenix 1086

    Unpaid for: Iraq War
    Unpaid for: Afghanistan War
    Unpaid for: Tax Break for the top 2%
    Unpaid for: Medicare Part D Plan

    George W. Bush was the biggest spender out of all of our presidents. Congress accepted at least $6.9 billion of the $11.3 billion in discretionary spending cuts President Obama proposed for the current fiscal year. Take your hypocritical talking points and shove them where the sun don't shine.

    July 30, 2010 04:06 pm at 4:06 pm |
  24. Dominican mama 4 Obama

    @Phoenix 1086:

    Tell us all what else was in the bill Ms. Momma, do you know?
    --------------------------------
    Do YOU???? Probably not.

    Insofar as my racial rhetoric calling the Republicans KKK: Did I hit a nerve too close to home? If we're going to talk about racial rhetoric let's also discuss the following: PURPLE-LIPPED, MONKEY, 'UPPITTY', GORILLA, SIMIAN-LOOKING, pictures of Obama as a 'tribal witch-doctor', that yokel Williams 'satiric' letter to Abraham Lincoln, Rush, Beck, the 'N' word being yelled at Congressmen, The Tea Party Express (to hell), and the ever popular "We Want Our Country Back".

    RethugliKKKlans have been widening the racial divide in this country
    ever since Pres. Obama took office. Fact. The Democraps have been wimps in letting the likes of you get away with all of this b.s. as opposed to taking you head on.

    God Bless.

    July 30, 2010 04:14 pm at 4:14 pm |
  25. You're Not A Real Leader

    First, the only auto company that has been strong throughout this bailout season is the only one that didn't take any bailout money: Ford. Take them out of the equation and the bailout recipients, as a collection, don't look so hot anymore.

    Second, we have a shelled out a trillion dollars to gain 600,000 jobs. A liberal friend of mine equated that to about $2000 per job which he thought was a pretty good investment. Then I realized the problem that liberals are suffering with. They can't do math. A trillion dollars is not $2000 per person spread over 600,000 people. A trillion dollars is $2 million dollars per person spread over 600,000 people. He was confusing a trillion with a billion. We're better off just giving the money directly to people than whatever was done with it (it was just used on the usual liberal project laundry list in reality). But now I understand why liberals think this is such a good idea. It's the math, stupid!

    July 30, 2010 04:17 pm at 4:17 pm |
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