Obama sees need for auto bailout

Professing that the United States has 8220;only one president at a time,8221; Obama is avoiding Washington this week as world leaders who would love to take his measure are gathering there for a financial summit.

He is also steering clear of a lame-duck session of the US Congress that will attempt to craft a new economic stimulus package, a job that will be left to him when he takes over on January 20 should an agreement fail to materialize.

But Obama, a Democrat who had solid support of labor unions during his presidential campaign, has come out firmly in favor of the auto bailout, raising the issue at a news conference last Friday and again in talks with Republican President George W. Bush on Monday.

Obama transition leader John Podesta said on Tuesday that Obama wants to ensure that the auto industry survives to produce 8220;the kind of vehicles that the American public need, and complete the job of creating more efficient vehicles that meet our energy needs.8221;

Proponents of a bailout see the auto industry as an important source for millions of US jobs that must be saved, not just in production lines, but rippling down to auto parts companies, car dealers and repair shops.

If the US government is willing to bail out insurance giant AIG with 150 billion in taxpayer funds, surely it can send 25 billion to Detroit, according to this line of thinking.

MILLIONS OF JOBS

8220;We8217;re talking about 25 billion to save millions of jobs in this country. I don8217;t think that8217;s unreasonable,8221; said Michigan Democratic Sen. Debbie Stabenow on Fox News Channel.

Detractors say the auto companies should be left to resolve their own problems after refusing for years to offer innovations such as more fuel-efficient cars in favor of gas-guzzling vehicles that have fallen out of favor after Americans got a taste of 4-a-gallon gasoline last summer.

8216;New York Times8217; columnist Thomas Friedman wrote on Wednesday that the auto industry has avoided innovation for years, shielded by Michigan8217;s congressional delegation from environmental and mileage concerns and the full impact of global competition.

The Bush administration has been cool to the idea of using the 700 billion bailout package to rescue the Big Three.

White House spokesman Tony Fratto said if Congress wants to send money to the Big Three, there is already a loan program in place for the auto industry that only needs to be amended.