President Obama Backs Retooled U.S. Auto Industry

Obama says he backs retooled auto industry but won't protect manufacturers from own bad practices

WASHINGTON, DC - February 24, 2009: The AP reported that President Barack Obama says his administration is committed to a retooled auto industry, but it won't protect auto makers from their own bad practices.

Obama says the nation that invented the automobile cannot walk away from it. He said millions of jobs and scores of communities depend on saving the industry.

The administration is weighing the fate of General Motors Corp. and Chrysler LLC. The two have received more than $17 billion in federal loans and are seeking an additional $21.6 billion.

Both automakers have pressing needs. General Motors has said it could run out of money by the end of March and needs $2 billion next month and $2.6 billion in April to remain solvent.

Chrysler has requested an additional $5 billion in loans and wants the government to approve an alliance with Fiat SpA.