President Barack Obama Friday sought to rally support around the government intervention to keep General Motors and Chrysler afloat.
Obama, speaking during visits to GM and Chrysler plants in Michigan, sought to highlight the benefits to workers at the now-revived companies to blunt criticism of the federal bailout, one of the most frequently criticized actions of his presidency so far.
Obama said that the intervention had proved critical to preventing the domestic auto industry from going off a cliff in a year marked by massive layoffs and sales plunging 40 percent.
"As the financial crisis and the vicious recession collided with an industry that for too long had avoided hard choices and hadn't fully adapted to changing times, we finally reached the point where two of the Big Three -- Chrysler and GM -- were on the brink of liquidation," he said.
In that situation, Obama said, he was faced with few choices, none of which were ideal. He could have simply handed over funds to keep the companies afloat without forcing accountability, as had been done in the past.
But he rejected that approach as simply kicking the can down the road.
"A second option was to do nothing and risk allowing two of the Big Three to disintegrate," Obama said. "And that could have meant the end of an industry that, like no other industry, represents so much of what makes up the American spirit."
He added, "This industry has been the source of deep pride for generations of American workers whose imaginations led to some of the finest cars the world has ever known -- and whose sweat built a middle class that has held the dreams of millions of our people."
Obama also sought to highlight that the implosion of the automakers would have also had a calamitous effect on the suppliers and the communities that depend on them.
"Estimates suggest that more than 1 million jobs could have been lost if Chrysler and GM had liquidated," he said. "And in the middle of a deep recession, that would have been a brutal, irreversible shock not just to Detroit, not just to the Midwest, but to our entire economy."
He added, "I refused to let that happen."
The third option, the one he ultimately took, was to provide aid for the companies but insist they make the changes needed to become more competitive and revive themselves, Obama said.
"I believed that if each of us were willing to work and sacrifice in the short term -- workers, management, creditors, shareholders, retirees, communities -- it could mark a new beginning for a great American industry," he said.
He added, "If we could summon that sense of teamwork and common purpose, we could once again see the best cars in the world designed, engineered, forged, and built right here in Detroit, right here in the Midwest, right here in the United States of America."
Obama said that his faith in the future of the companies has been vindicated as they continue to add jobs and develop and manufacture energy-efficient cars and trucks.
However, he noted that some of the jobs lost in the American auto industry would likely never come back, necessitating continued investments to promote manufacturing growth in other sectors of the economy, notably in clean energy.
"Investments like those mean jobs for American workers to do what they've always done: build great products and sell them around the world," he said. "We've got a long way to go, but we're beginning to see some of these tough decisions pay off."
Obama also sought to remind the workers about the consequences they would have faced with Republicans in power.
"There were leaders of the 'just say no' crowd in Washington, they were saying, 'Oh, standing by the auto industry would guarantee failure,'" he said. "One of them called it 'the worst investment you could possibly make.'"
He added, "I wish they could see what I'm seeing in this plant and talk to the workers who are here taking pride in building a world-class vehicle. I don't think they'd be willing to look you in the eye and say that you were a bad investment. … I want all of you to know, I will bet on the American worker any day of the week."
Obama also took advantage of his visit to the plant to briefly drive one of the new Chevy Volt hybrid-electric cars that will be built there.
Obama drove the vehicle roughly 10 feet at a slow pace, a rare opportunity for a President whose Secret Service detail had to provide permission for the attempt.
White House aides said that the last time Obama drove himself was several months ago when he drove a Dodge Charger at a Secret Service training facility.
That was the first time Obama had driven himself since receiving Secret Service protection during the presidential campaign.
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