Obama wants bigger aid effort for auto giants

Business Materials 14 November 2008 05:46 (UTC +04:00)

President-elect Barack Obama has supported extension of more than $25 billion in quick government aid for distressed U.S. automakers while Republicans forcefully questioned a bailout being crafted by Democrats, Reuters reported.

The stakes for Washington aid rose on Thursday after Goldman Sachs suspended its rating on General Motors Corp and said the stricken automaker needs at least $22 billion. Goldman also said it would be difficult for Chrysler LLC to survive without a hand from government.

Inserting themselves squarely in the middle of the presidential transition, automakers have raised the threat of industry collapse soon after Obama takes office in January unless the bailout is given now.