Obama’s election bodes well for auto industry aid

November 6, 2008 at 12:00a.m.

General Motors is expected to announce ‘important changes,’ which could include closings.

DETROIT (AP) — Detroit automakers and their allies in Congress said Wednesday Barack Obama’s victory could help U.S. automakers line up federal funding needed for them to survive a terrible economic slump.

Obama made it clear during his campaign that he understood the automakers’ problems and would work to preserve the industry, U.S. Sen. Carl Levin, D-Mich., said Wednesday.

“I’m very optimistic that we’re going to have a fighter in the White House for manufacturers, and that’s what we need,” Levin said.

Levin said he was told Wednesday by Jason Furman, Obama’s senior economic adviser, that government aid is atop Obama’s agenda. Levin said Furman did not commit to a specific funding path for the industry but was supportive.

Obama has said he would meet with industry leaders and the United Auto Workers immediately to talk about helping automakers, but a meeting has not yet been scheduled.

Levin noted that Obama expressed support for doubling an Energy Department loan program for automakers to develop fuel-saving technology to $50 billion from $25 billion.

Michigan’s other senator, Democrat Debbie Stabenow, said Senate Majority Leader Harry Reid, D-Nev., appears open to supporting another $25 billion in flexible funding.

Obama’s victory over Republican John McCain came just three days before General Motors Corp. and Ford Motor Co. are to release their third-quarter results, which almost certainly will show billions in losses and cash burn rates that will push the companies closer to emptying their treasuries if auto sales don’t bounce back soon.

Further job cuts by both automakers are expected on Friday. Analysts say GM could close more plants but Ford has said it will likely do temporary factory shutdowns and overtime cuts at some of its car plants.

GM’s top executives sent an e-mail to other executives Wednesday saying that “important changes” will be announced on earnings day. Spokesman Tom Wilkinson called the announcement a routine update. The e-mail did not give specifics and Wilkinson said he could not comment on them.