Skip to Content
Streetsblog Los Angeles home
Streetsblog Los Angeles home
Log In
Transportation Policy

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, might
be open to tapping the rescue fund to help carmakers, calling the auto
industry an "essential part of our industrial base."

He added
that Mr. Obama has asked his economic team to look at ways to involve
the industry in shaping an energy policy that weans the country off
foreign oil, seeking ways to use the $25 billion in loans that Congress
passed in September to help make auto plants more capable of producing
fuel-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 Los Angeles

Whittier Councilmember Fernando Dutra Is New Metro Board Chair

Board Chair Dutra: "[Metro is] not just a train and a bus company. We also manage projects on the freeways... Our projects along the 5, the 605, 91, and 105 Freeway are very very important... I'll be focusing on making sure we keep our freeways moving freely."

July 9, 2025

Covina Residents Call on City for Protections from Immigration Raids

Community members took to city council to share their frustrations and demands.

July 8, 2025

This Week In Livable Streets

ICE protests and vigils, Culver City Better Overland, Metro NoHo-Pasadena BRT meetings, Metro Sepulveda Transit meetings, Metro PSAC, and more

July 7, 2025
See all posts