Obama says no 'blank cheque' for auto industry

Terming the US auto industry as the backbone of the country's manufacturing base, President-elect Barack Obama has said while the industry cannot be "let down", any "blank cheque" can also not be issued for Detroit manufacturers.

"We can't allow the auto industry simply to vanish. What I also have said is that we can't just write a blank cheque for the auto industry," Obama said addressing a press conference here.

Highlighting the economic significance of the auto industry he said, "We can't allow the auto industry simply to vanish. We've got to make sure that it is there and that the workers, and suppliers, and businesses that rely on the industry stay in business".

But, he said, taxpayers can't be expected to pony up more money for an auto industry that has been resistant to change.

He was responding to a query regarding the request made by the 'Big Three' automakers last week for $25 billion in government-backed loans.

Top executives from Chrysler, Ford and General Motors had warned the Congress that the domestic auto industry is facing a "catastrophic collapse" which would lead to the loss of millions of jobs if lawmakers don't help them weather a sharp economic downturn with "bridge" loans.

"I was surprised that they did not have a better thought out proposal when they arrived in Congress. I think Congress did the right thing, which is to say, You guys need to come up with a plan and come back before you're getting any taxpayer money," Obama said.