Obama Speaks on Auto Industry

President Obama began a bus tour of Ohio and Pennsylvania on Thursday. During the 250 mile, “Betting on America” bus tour, Obama plans on defending his economic policies and his decision to bail out the US automakers. The Obama campaign released a statement prior to the tour; “The President will also talk with voters in their communities about the choice in this election, whether we want to grow our economy from the middle out, not the top town.” In a recent ad ran in Ohio, President Obama states, "Mitt Romney's companies were pioneers in outsourcing U.S. jobs to low-wage countries. He supports tax breaks for companies that ship jobs overseas. President Obama believes in insourcing." The ad also comments on his decision to rescue the US automakers General Motors

and Chrysler. On Thursday, the Obama administration strengthened its trade offensive with China by urging the World Trade Organization to make China stop imposing duties on US car exports. President Obama commented on the auto industry and offensive during is speech at Maumee, Ohio: “When the American auto industry was on the brink of collapse, and more than 1 million jobs were on the line, Romney said we should let Detroit go bankrupt, I refuse to turn my back on communities like this one. That Chrysler plant up the road is bringing on another 1100 employees to make the cars that the world wants to buy. The Wrangler built right here in Toledo, just set an all times sale records.” The President further added, “That is why my administration brought trade cases against China at a faster pace than the previous said administration, and we won those cases. This morning my administration took a new action to hold china accountable for unfair trade practices that harm American automakers.” On Thursday, the Obama administration stated that China imposed $3.3 billion worth of unfair duties on US auto exports. One of the cars that were unfairly taxed was the Chrysler Jeep Wrangler. The Jeep Wrangler is made in Ohio, where Obama toured on Thursday. Ohio is a leader in the automotive industry and Obama saw large support from the area in his first election. The Obama Administration, through a taxpayer rescue, bailed out Chrysler and General Motors in 2009. Obama criticizes Mitt Romney for stating that he would have let companies go into bankruptcy. In June, the automotive industry saw sale increases that beat analyst estimates. Chrysler provided its 27th consecutive monthly year-over-year increase and an increase of 20% in June. GM posted a 16% year-over-year gain in June, having its best month of sales since September of 2008. Kurt McNeil, General Motors' vice president of U.S. sales, noted, “The combination of new products, available credit, lower fuel prices and modest economic growth was a stronger influence on consumer behavior than economic and political uncertainty.” Even with strong sales gains in the auto industry, a weak economic recovery and the crises in Europe could cause the industry to falter.