The auto industry in the USA is thriving, just not in Detroit.

“Federal financial assistance would cover 10 percent — up to $7 billion — of automakers’ annual legacy health care costs through 2017, under Obama’s plan, which would require automakers to invest at least half of their health care savings into technology to produce fuel-efficient cars.

As a second choice, Obama’s plan would provide $3 billion to automakers over 10 years to help retool plants to make fuel-efficient cars and trucks.”

“To start, his plan calls for raising American fuel economy standards by 4 percent each year, adding about one mile per gallon. Passenger cars currently must meet a fleetwide average of 27.5 miles per gallon, while the standard for SUVs, pickups and vans is 22.2 mpg.

The Bush administration has set a similar goal of increasing the standards by 4 percent each year.”

“Separately, a portion of Obama’s energy plan that would establish to establish a national version of California’s low carbon fuel standard drew praise from Gov. Arnold Schwarzenegger, a Republican.”

http://www.latimes.com/news/nationworld/politics/la-na-apobamaenergy07may07,1,2006727.story?coll=la-news-politics-national&track=crosspromo

“‘Automakers still refuse to make the transition to fuel-efficient production because they say it’s too expensive at a time when they’re losing profits and struggling under the weight of massive healthcare costs, but expensive is no longer an excuse for inaction,’ he said from prepared remarks. ‘The auto industry is on a path that is unacceptable and unsustainable – for their business, for their workers and for America.’”

“Obama, noting that he is from the economically challenged south side of Chicago, said the country has lacked an urban agenda during President George W. Bush’s time in office.

He said he would add funding to help with the No Child Left Behind school accountability law, increase block grant funding to cities and organize nonprofits to build ‘innovative mixed-income housing.’

He also said the government must do a better job of making jobs available to people with criminal convictions.”

http://www.freep.com/apps/pbcs.dll/article?AID=/20070507/NEWS01/70507025/1069

“So here’s the deal we can make with the auto companies. It’s a piece of legislation I introduced called ‘Health Care for Hybrids,’ and it would allow the federal government to pick up part of the tab for the auto companies’ retiree health care costs. In exchange, the auto companies would then use some of that savings to build and invest in more fuel-efficient cars. It’s a win-win proposal for the industry – their retirees will be taken care of, they’ll save money on health care, and they’ll be free to invest in the kind of fuel-efficient cars that are the key to their competitive future.”

“The federal government can help [with biofuels] in two ways here. First, we can reduce the risk of investing. We already do this in a number of ways by funding projects critical to our national security. Energy independence should be no different. By developing an Energy Technology Program at the Defense Department, we can provide loan guarantees and venture capital to those with the best plans to develop and sell biofuels on a commercial market. The Defense Department will also hold a competition where private corporations get funding to see who can build the best new alternative-fuel plant. The Department can then use these new technologies to improve the energy security of our own military. ”

http://obama.senate.gov/speech/060228-energy_security_is_national_security/