Gov. Strickland backs aid for ailing carmakers

COLUMBUS — Gov. Ted Strickland said he supports federal assistance for ailing automobile manufacturers, though any such aid should be aimed at protecting workers.

“The devil is always in the details,” Strickland told reporters near the Statehouse Friday. “And I would like to see the details. I don’t want those resources used in ways that would benefit the shareholders of the auto companies while costing Ohio. .. jobs. So I think it would all depend on how the bailout was structured and what expectations were placed upon the auto companies.”

Strickland’s comments came a day after he talked to an executive from General Motors about declining vehicle sales. And on Friday, GM and Ford Motor Co. announced dismal financial results for the quarter. Strickland said the GM official told him the sales decline for the month was the largest since World War II.

“I am told by auto dealers that one of the reasons there’s been such a decline in auto sales is that people simply cannot get financing,” Strickland said. “Even people who have established credit histories have been reliable borrowers are having a difficult time getting the financing they need to purchase cars or trucks. … I would think that (U.S. Treasury Secretary Henry Paulson) should be paying attention to these matters as well as the matters that most directly affect Wall Street.”

Given the ongoing economic struggles at the state level, including a billion dollars-plus in state spending cuts this year, any assistance likely would have to come from the federal level.

“I will be encouraging my friends at the federal level to recognize the importance of the auto industry to Ohio and to take steps to help this industry survive,” Strickland said. “If one of the big three were to collapse, I have seen estimates of perhaps jobs loss of a hundred thousand employees (nationally).”

He added, “It is a critical industry. It’s one that I think is in great need of some assistance right now.”