June 27, 2008 - 2:15 pm ET
WARREN, Ohio (Reuters) -- Republican presidential candidate John McCain said on Friday he would oppose a government bailout of the ailing auto industry and voiced strong support for free trade in the hard-hit state of Ohio.
The Arizona senator toured General Motors' Lordstown auto plant and watched as high-mileage Chevrolet Cobalt and Pontiac G5 economy cars rolled down the assembly line, cars that are suddenly popular at a time of record-high gasoline prices.
Economic concerns dominated a town-hall meeting McCain held at the GM plant as he campaigns against Democratic nominee Barack Obama before the Nov. 4 election.
Ohio's economy lags well behind much of the country, with an unemployment rate of 6.3 percent in May, above the national average of 5.5 percent. Some 238,000 manufacturing jobs have been lost since President George W. Bush took office.
"America is hurting now," McCain said. But he said the future of the auto industry was in building high-mileage vehicles. "It's going to be hard, it's going to be long and it's going to be tough."
U.S. automakers GM, Ford Motor Co. and Chrysler LLC are struggling with a sharp sales falloff and painful restructurings that have resulted in plant closings and thousands of job losses, especially in economically hard-hit Michigan.
McCain, speaking to reporters after the town-hall meeting, said he supported putting government dollars into research and development of batteries and other sources of energy for the next generation of automobiles.
But he said he was against an overall industry bailout.
"I'm afraid not," he said. "A bailout, I don't think works."
Liquidity concerns for the three have spiked with consumers shifting away from sport utilities amid gasoline prices more than $4 per gallon, the housing crisis and the credit crunch.
Earlier this week, Chrysler drew down a $2 billion credit line and by Thursday was denying market rumors it faced a cash-crunch or was headed for bankruptcy.
GM shares hit their lowest level since 1955 on Thursday during a panicky slide prompted by concerns about cash, which the company said was adequate.
McCain faced questions from one employee at the GM plant about free-trade agreements that Democrats complain are costing Americans' jobs.
Raymond Francisco, 37, of Canfield, Ohio, said he had to move from his native New Jersey when he was laid off at an auto plant there.
"Is there any way that the trade can become more fair?" he asked.
McCain said he strongly supported free trade agreements and wanted to resist protectionism and isolationism.
But he said he did not believe that every trade agreement was completely fair, and that he would support setting up mechanisms within free-trade agreements so violations of them can be handled faster.
"I would do everything in my power to make sure that trade practices are fair and equitable," he said.
Link: http://www.autonews.com/apps/pbcs.dll/arti...p;rssfeed=RSS31