Wagoner: Why the US Should Bail Detroit Out

Detroit making better cars—and has broad roots in US economy
By Jim O'Neill,  Newser User
Posted Nov 19, 2008 10:40 AM CST
General Motors CEO Rick Wagoner testified yesterday at a Senate Banking, Housing and Urban Affairs hearing on the automotive industry bailout on Capitol Hill.   (AP Photo)
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(Newser) – An aggressive agenda of cost-cutting combined with research and development of new technologies has reshaped the US auto industry in recent years, General Motors CEO Rick Wagoner writes in the Wall Street Journal. And with the industry’s deep, broad roots in the US economy, government aid will help it weather the current financial storm, preserve millions of jobs, and safeguard the future.

The automaker has trimmed costs and expenses and is producing better-quality vehicles with improved fuel efficiency; more are on the horizon, Wagoner writes. “Short-term government support to bridge the current financial crisis will enable GM to continue as an engine for prosperity and as a creator of vehicles and technologies that America needs,” he concludes. “Such assistance will save millions of jobs now, and produce enormous benefits for years to come.”