White House Touts Detroit "Success Story"
The president wants you to know Detroit's Big Three are in the black again.
President Barack Obama is going to the heart of the U.S. auto industry to push an important election-year claim: his administration's unpopular auto industry bailout has turned into an economic good-news story.
Mr. Obama will visit three auto plants over the next several days to tout what White House press secretary Robert Gibbs calls "a success story."
In a report released Thursday, the White House said the auto industry has hired 55,000 workers - adding jobs for the first time since 1999 - and predicts another 11,000 new hires by the end of the year owing to plant refurbishments and added shifts.
All Big Three automakers have also announced quarterly profits - the first time that has happened since 2004. GM showed a profit of $865 million in the first quarter of 2010 (its first since 2005), and Chrysler earned $143 million. Ford just announced a $2.6 billion profit for the second quarter - its fifth straight quarterly profit.
The administration also pointed to increased demand leading GM and Chrysler to skip the typical summer shutdown of several auto plants and the addition of shifts at GM, Chrysler and Ford Motor Co. plants.
Exports of U.S. vehicles and parts are up (with sales to China alone totaling $1.85 billion in the first five months of 2010).
The White House said yesterday that the U.S. government will recoup the $60 billion the Obama administration spent on the auto industry bailout to avert an industry-wide meltdown.
In an interview broadcast Thursday on "The View," President Obama said, "We are going to get all the money back that we invested in those car companies."
Unclear is recoupment of an additional $25 billion spent during the Bush administration.
In its report the White House said failing to intervene would have led to the loss of nearly 1.1 million jobs.
"There's no doubt that the team that worked on auto restructuring here at the White House is surprised at where GM and Chrysler are," press secretary Robert Gibbs said on CBS' "The Early Show". "The Big Three all reported a profit for the first time since 2004, and these companies are hiring again - the auto industry's hiring again for the first time since 1999.
"There's no doubt it is a success story. We've got a ways to go. But there's no doubt that the investments that had to be made in the auto industry, the sacrifices and the restructuring that have been made, have put the auto industry on a much better path toward sustainability and one that's creating jobs again."
On Friday, Mr. Obama will visit GM's Hamtramck plant, which is planning to assemble the Chevrolet Volt rechargeable electric car. The plant is one of nine the automaker will keep open during the usual two-week summer shutdown.
In nearby Detroit, Mr. Obama will tour Chrysler's Jefferson North plant, which recently added a second shift of production, adding about 1,100 jobs.
Next week, the president will visit the Chicago plant where Ford builds the Taurus sedan and plans to assemble a new Explorer sport utility vehicle.
GM has repaid $6.7 billion that the government considered loans, with the remaining $43.3 billion converted into a 61 percent stake in the company. GM is expected to conduct an initial public offering of shares in the company later this year, a move that could help the government recoup some of its investment.
United Auto Workers President Bob King said in a statement Thursday that GM would file paperwork in mid-August to start the process of selling stock to the public.
Chrysler received about $15 billion in government help and was placed under control of Italian automaker Fiat as part of its bankruptcy. The company has repaid about half of the $4 billion loan portion of its aid and is considering a public stock offering sometime in 2011.
Ron Bloom, the administration's senior counselor for manufacturing policy, said it was unclear how long the government would hold ownership stakes in the companies. "We don't like having this investment, but we're not going to sell it at a fire sale," he said.
© 2010 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report. President Barack Obama is going to the heart of the U.S. auto industry to push an important election-year claim: his administration's unpopular auto industry bailout has turned into an economic good-news story.
Mr. Obama will visit three auto plants over the next several days to tout what White House press secretary Robert Gibbs calls "a success story."
In a report released Thursday, the White House said the auto industry has hired 55,000 workers - adding jobs for the first time since 1999 - and predicts another 11,000 new hires by the end of the year owing to plant refurbishments and added shifts.
All Big Three automakers have also announced quarterly profits - the first time that has happened since 2004. GM showed a profit of $865 million in the first quarter of 2010 (its first since 2005), and Chrysler earned $143 million. Ford just announced a $2.6 billion profit for the second quarter - its fifth straight quarterly profit.
The administration also pointed to increased demand leading GM and Chrysler to skip the typical summer shutdown of several auto plants and the addition of shifts at GM, Chrysler and Ford Motor Co. plants.
Exports of U.S. vehicles and parts are up (with sales to China alone totaling $1.85 billion in the first five months of 2010).
The White House said yesterday that the U.S. government will recoup the $60 billion the Obama administration spent on the auto industry bailout to avert an industry-wide meltdown.
In an interview broadcast Thursday on "The View," President Obama said, "We are going to get all the money back that we invested in those car companies."
Unclear is recoupment of an additional $25 billion spent during the Bush administration.
In its report the White House said failing to intervene would have led to the loss of nearly 1.1 million jobs.
"There's no doubt that the team that worked on auto restructuring here at the White House is surprised at where GM and Chrysler are," press secretary Robert Gibbs said on CBS' "The Early Show". "The Big Three all reported a profit for the first time since 2004, and these companies are hiring again - the auto industry's hiring again for the first time since 1999.
"There's no doubt it is a success story. We've got a ways to go. But there's no doubt that the investments that had to be made in the auto industry, the sacrifices and the restructuring that have been made, have put the auto industry on a much better path toward sustainability and one that's creating jobs again."
On Friday, Mr. Obama will visit GM's Hamtramck plant, which is planning to assemble the Chevrolet Volt rechargeable electric car. The plant is one of nine the automaker will keep open during the usual two-week summer shutdown.
In nearby Detroit, Mr. Obama will tour Chrysler's Jefferson North plant, which recently added a second shift of production, adding about 1,100 jobs.
Next week, the president will visit the Chicago plant where Ford builds the Taurus sedan and plans to assemble a new Explorer sport utility vehicle.
GM has repaid $6.7 billion that the government considered loans, with the remaining $43.3 billion converted into a 61 percent stake in the company. GM is expected to conduct an initial public offering of shares in the company later this year, a move that could help the government recoup some of its investment.
United Auto Workers President Bob King said in a statement Thursday that GM would file paperwork in mid-August to start the process of selling stock to the public.
Chrysler received about $15 billion in government help and was placed under control of Italian automaker Fiat as part of its bankruptcy. The company has repaid about half of the $4 billion loan portion of its aid and is considering a public stock offering sometime in 2011.
Ron Bloom, the administration's senior counselor for manufacturing policy, said it was unclear how long the government would hold ownership stakes in the companies. "We don't like having this investment, but we're not going to sell it at a fire sale," he said.
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Your union friends have the Golden Cadillac Health Plan.
A Chevy VOlt will cost $41,000 - with all the jobs you "saved" we will surely sell millions at that price because all those saved jobs and all those working Americans will add up to an unemployment rate of 10% and another 15% either underemployed or fearfull that next week they will loose their job.
I am so glad you spent tons of American Taxpayer $ on lailouts and stimulas for the economy and all you have to show for it is "saved jobs" By the way it was nice of you to invent this term "Saved jobs" - something that cannot be substiated or tracked or verifed in any way.
It is a number you made up to try and support your failed economic policies.
We are a much weaker country tanks to you Mr. Obama.
And I guess from your seat it truely is "Mission Accomplished"
THE TRAGEDY OF DETROIT -- Muslims Take Over
As a United Van Lines truck driver for my summer job from teaching math and science, I loaded hundreds of American families into my van for a new life in another city or state. Detroit plummeted from 1.8 million citizens to 912,000 today. At the same time, legal and illegal immigrants converged on the city, so much so, that Muslims number over 300,000. Mexicans number 400,000 throughout Michigan, but most work in Detroit.
As the whites moved out, the Muslims moved in. As the crimes became more violent, the whites fled. Finally, unlawful Mexicans moved in at a torrid pace. Detroit suffers so much shoplifting that grocery stores no longer operate in many inner city locations.
Ever since he was elected, President Obama has expanded the federal government at the expense of private business and the American taxpayers. The reason the recession is worse, is because he and progressive Democrats in Congress have made it so.
They passed the health care bill, over the objections of the majority of Americans. This horrible bill places addition burdens on businesses and American taxpayers at a time of high unemployment and economic recession. They plan to let the bush tax cuts expire, which will result in taking money out of the economy and pushing it into Washington. They pushed a cap and trade bill and climate related bills that are job killers. They refuse to secure the borders and to enforce federal immigration law, resulting in states and cities picking up huge tabs for people who are paid under the table (aren't taxed). They are responsible for a $1.47 trillion deficit this year, because of outrageous federal spending. Almost 20% of the nation?s budget goes to pay just the interest for the national debt. Granted, both Republicans and Democrats contributed to the national debt. However, the Democrats have exploded it like never before with wild excessive federal spending.
You can not enact fiscally irresponsible policy, and expect things to go well economically. This administration is going all the wrong things economically, and we all are suffering for it. Recently, President Obama stated that he projects that 9% unemployment will remain into the year 2012. This is unacceptable. Instead of growing the government, he should be creating an environment where private business can begin hiring again. This is a disaster, and it has to stop.
" Obama White House "Success Story"
reads like
"France War Victories of World War II".......