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McCain promises to help struggling auto workers

THE ASSOCIATED PRESS

July 19, 2008

WARREN, Mich. - Republican presidential candidate John McCain pledged Friday to help auto workers rebuild their industry and in the process jump-start the entire U.S. economy.

Standing in a town-hall meeting with hundreds of people and several shiny new cars, McCain sounded at times like a confident, encouraging salesman as he praised General Motors' plans for a long-range electric car.

"The key, integral, vital part of our ability to eliminate our dependence on foreign oil will be directly related to that sign over there," said McCain, pointing to one for the Chevrolet Volt. "I wish you every success, and I want to help in every way."

Trailing Democrat Barack Obama in polling on economic issues, the likely Republican nominee sought to bolster his appeal to voters by speaking to those who've seen fellow workers lose jobs and homes in Michigan.

Even as Detroit's Big Three automakers try to adapt rapidly to demand for smaller, more efficient cars that sip $4-a-gallon gas, many in the industry fear the presidential candidates' talk of energy alternatives and conservation will translate into more job losses.

Earlier this week, GM announced $15 billion in cuts, borrowing and asset sales as it tries to weather a huge drop-off in sales of trucks and large cars on top of more long-term cost problems.

At the General Motors Design Center, GM chief executive Rick Wagoner and other company officials gave McCain a tour before he spoke to engineers and other workers. McCain, who has proposed giving a $5,000 tax credit for those who buy a no-emissions car, said the successful technology would mean hundreds of thousands of new jobs.

Most questions from the crowd centered on economic issues like health care, free trade and the effect environmental laws could have on the U.S. auto industry.

McCain also pushed a plan for the government to help homeowners struggling to make their mortgage payments get a new, cheaper fixed-rate mortgage.

"There's thousands and thousands and thousands of citizens in this state who can't afford the payments to stay in their homes," he said.

"We've got to hit bottom someplace and then it's going to start up again," he said, but until that happens, the government should work to keep people in their homes by giving them access to fixed-rate lending.

While polls show McCain is behind Obama on economic issues, Obama trails McCain on foreign affairs issues.

Each candidate is trying to shore up his credentials in those perceived weaknesses, McCain by hammering domestic economic plans and Obama with a trip to the Middle East and Europe.