White House Officials say Aid to Automakers Needs to be from the Right Source

Bush administration officials stressed Monday that they believe help should be given to the struggling auto industry, but not out of the $700 billion financial rescue program.

Dana Perino, President Bush’s Press Secretary, stressed that the administration thinks that support for the automakers should come instead from a Department of Energy program previously approved for use for companies building energy efficient vehicles.

Perino further 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.” She also commented that media reports have depicted the administration as taking too harsh a stand on financial relief for the automakers.

Most Democrats support the use of the $700 billion in aid to bail out the big three automakers and support the approval of $25 billion to Ford Motor Company, Chrysler LLC, and General Motors Corporation.

Passage of the auto industry bailout plan seems to have enough traction in the House to pass but the Senate is less certain as there may be enough Republicans dead-set against the plan for it to pass. Republican Senator Richard Shelby of Alabama called the U.S. auto industry a “dinosaur” whose demise would simply be stalled by a bailout.

Source: The Detroit News