Obama praises auto bailout plan

President-elect Barack Obama praised President George W. Bush's plan to bailout U.S. automobile companies and called on the carmakers to make needed changes.

Bush said his $17 billion package was necessary to prevent a collapse of the U.S. auto industry.

"Under ordinary economic circumstances, I would say this is the price that failed companies must pay," Bush said. "But these are not ordinary circumstances. In the midst of a financial crisis and a recession, allowing the US auto industry to collapse is not a responsible course of action."

Obama agreed that the bailout was "necessary step."

"With the short-term assistance provided by this package, the auto companies must bring all their stakeholders together... to make the hard choices necessary to achieve long-term viability," Obama said.

During the campaign, Obama called on the U.S. auto industry to change their direction and work toward making cleaner, more fuel-efficient cars.

Obama urges carmakers to 'reform'
BBC News - 36 minutes ago
US President-elect Barack Obama has welcomed the multi-billion dollar aid package for US carmakers, but said the industry faces some "hard decisions".
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