Obama bats for ailing US auto industry during talks with Bush

New York, Nov 11 (PTI) President-elect Barack Obama, who
has described the U.S. auto industry as the "backbone of
American manufacturing" has asked President George W. Bush to
initiate an immediate rescue package for the ailing sector
during their first meeting at the White House.

"Obama went into his post-election meeting with Bush on
Monday primed to urge him to support emergency aid to the auto
industry," advisers to the first-ever black-American
president-elect was quoted as saying by the New York Times.

But Bush indicated at the meeting, held without aides,
that he might support some aid and a broader economic stimulus
package if Obama and Congressional Democrats dropped their
opposition to a free-trade agreement with Colombia, a measure
for which Bush has long fought, the influential newspaper
quoted people familiar with the discussion as saying.

U.S. labour unions oppose the F.T.A. deal with Colombia
citing numerous murders of trade unionists in the South
American nation by right-wing paramilitary squads who, critics
say, are often closely linked to the Colombian armed forces.

The Bush administration has balked at allowing the
automakers to tap into the USD 700 billion bailout fund,
despite warnings last week that General Motors, the world's
No.1 automaker, might not survive the year.

But Democrats also indicate that neither Obama nor
Congressional leaders are inclined to concede the Colombia
pact to Bush, and may decide to wait until the senator from
Illinois assumes power on January 20 next, the paper said.

Separate from his differences with Bush, Obama has
signalled to the automakers and the unions that his support
for short-term aid now, and long-term assistance once he takes
office,is contingent on their willingness to agree to
transform their industry to make cleaner, more
energy-efficient vehicles.

At his first post-election press conference in Chicago on
November 7, Obama had singled out the ailing auto industry and
highlighted its plight following the economic crisis.

"The news coming out of the auto industry this week
reminds us of the hardship it faces, hardship that goes far
beyond individual auto companies to the countless suppliers,
small businesses and communities throughout our nation who
depend on a vibrant American auto industry.

"The auto industry is the backbone of American
manufacturing and a critical part of our attempt to reduce our
dependence on foreign oil," Obama had said.

As the auto industry reels, rarely has an issue so
quickly illustrated the differences from one White House
occupant to the next, the paper said.

"How Mr Obama responds to the industry's dire straits
will indicate how much government intervention in the private
sector he is willing to tolerate. It will also offer hints of
how he will approach his job under pressure, testing the
limits of his conciliation toward the opposition party and his
willingness to stand up to the interest groups in his own,"
the Times said.

General Motors reported a USD 2.5 billion net loss for
the third quarter last week.

The major U.S. automakers —- G.M., Ford and Chrysler -—
are each using up their cash at unsustainable rates. The
Center for Automotive Research, which is based in Michigan and
supported by the industry, released an economic analysis of
the impact of one or all of them failing.

It said if the 'Big Three' were to collapse, it would
cost at least three million jobs, counting autoworkers,
suppliers and other businesses dependent on the companies,
down to the hot-dog vendors and bartenders next door to the
plants. PTI A.K.J.
RKM
NNNN