Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Barack Obama

Pelosi, Reid and Emanuel Push for Carmaker Bailout

2560777189_1cfcb929ba.jpgCadillac assembly line replica at the Detroit Historical Museum

Over the weekend, Democratic leaders in the House and Senate urged the Bush administration to extend financial aid intended for Wall Street to struggling domestic carmakers, a move that could have the support of President-elect Obama.

The Times reports that on Saturday, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid co-signed a letter to Treasury Secretary Henry Paulson asking that part of the $700 billion bailout package be directed toward Detroit. "A healthy automobile manufacturing sector is essential to the
restoration of financial market stability, the overall health of our
economy and the livelihood of the automobile sector’s workforce," they wrote.

The letter was issued following a Thursday meeting between Congressional leaders and representatives of Ford, Chrysler and General Motors, as Big Three sales continue to plunge. On Friday, GM announced that it could begin running out of cash in 2009.

Rahm Emanuel, incoming White House chief of staff, hinted on Sunday that his boss could be amenable to the Pelosi-Reid proposal. Again, the Times

When asked on ABC’s "This Week" where Mr. Obama stood on the issue,Mr. Emanuel seemed to suggest that Mr. Obama, as a last resort, mightbe open to tapping the rescue fund to help carmakers, calling the autoindustry an "essential part of our industrial base."

He addedthat Mr. Obama has asked his economic team to look at ways to involvethe industry in shaping an energy policy that weans the country offforeign oil, seeking ways to use the $25 billion in loans that Congresspassed in September to help make auto plants more capable of producingfuel-efficient cars.

The Bush White House, for its part, has indicated it would not support using bailout funds for the Big Three.

Photo: MarkinDetroit/Flickr

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday’s Headlines Got Served

Another day, another GOP lawsuit trying to overturn a Biden administration climate change rule.

April 19, 2024

Disabled People Are Dying in America’s Crosswalks — But We’re Not Counting Them

The data on traffic fatalities and injuries doesn’t account for their needs or even count them. Better data would enable better solutions.

April 19, 2024

LA: Automated Enforcement Coming Soon to a Bus Lane Near You

Metro is already installing on-bus cameras. Soon comes testing, outreach, then warning tickets. Wilshire/5th/6th and La Brea will be the first bus routes in the bus lane enforcement program.

April 18, 2024

Talking Headways Podcast: Charging Up Transportation

This week, we talk to the great Gabe Klein, executive director of President Biden's Joint Office of Energy and Transportation (and a former Streetsblog board member), about curbside electrification.

April 18, 2024

Why Does the Vision Zero Movement Stop At the Edge of the Road?

U.S. car crash deaths are nearly 10 percent higher if you count collisions that happen just outside the right of way. So why don't off-road deaths get more air time among advocates?

April 18, 2024
See all posts