Obama advisors: Carmakers need a recovery plan
A senior advisor to President-elect Barack Obama warned Sunday that American automakers would have to come up with a plan to restructure before the industry received any federal bailout.
“They’re going to have to retool and rationalize their industry for the future. And if they don’t do that, then there’s very little that taxpayers can do to help them,” incoming White House senior advisor David Axelrod said on ABC News’ “This Week.”
Former Commerce Secretary Bill Daley, another Obama advisor, echoed a point that Democratic congressional leaders are making as well: “They have to do it. The responsibility is on the auto industry and the unions to come back with a plan,” Daley said on NBC News’ “Meet the Press.”
Congress last week delayed a vote on an auto industry bailout until December. Congressional leaders told the three major auto manufacturers to submit plans by Dec. 2, with Congress returning to Washington the week of Dec. 8 to consider an assistance package.
Neither of the Obama advisors Sunday offered any guidance on the thresholds automakers would have to meet to establish credibility for reform plans with either the incoming administration or Congress.
Industry analysts point to formidable obstacles that auto manufacturers confront in their business structure that could be politically painful to address. Among them are substantial pension obligations to retired workers, compensation and work rules in union contracts, and costs associated with excess plant capacity and large networks of car dealerships.
Still, Obama advisors and Democratic lawmakers stress the importance of maintaining the health of the auto industry.
“We all have a stake in the survival and the prosperity of the auto industry,” Axelrod said. “Millions of jobs depend on that.”
But House Minority Leader John A. Boehner (R-Ohio) expressed skepticism that automakers would produce a credible plan.
“I’m not sure that they will have a plan by early December, a real plan,” Boehner said on “Fox News Sunday.” “And on behalf of the American taxpayers, they’re not interested in investing money that’s . . . going to be really thrown away.”
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