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DETROIT and WASHINGTON, D.C. — As President Obama walked through General Motors and Chrysler manufacturing facilities late last week, the White House sent out a report about its cumulative efforts to resuscitate the industry.

The administration stressed throughout a document titled "The American Auto Industry: A Comeback Story" that had federal officials not swooped in with significant financial assistance, a catastrophic economic tailspin would have ensued.

"When President Obama took office, the American auto industry was on the brink of collapse," White House officials emphasized.

"The President made a difficult decision to provide support to General Motors and Chrysler on the condition that all stakeholders make the sacrifices necessary to fundamentally restructure these companies and put them on a path to viability," they continued. "This summer, there are growing signs of a revival in the American auto industry: plants are adding shifts and hiring workers; manufacturers are returning to profitability; the auto supply industry has stabilized; and exports of U.S. vehicles are increasing."

Beyond the working capital these automakers needed, the White House went on to articulate other measures it took to boost the industry.

"In addition, the Administration has made an historic set of investments designed to position America as a leader in the global race to produce the advanced vehicles of the 21st century," officials stressed.

"Advanced technology vehicles are appearing in showrooms, new factories are breaking ground to manufacture and assemble electric vehicles, and innovations once at risk of being scrapped, are now being designed and made in America," they added.

When addressing a crowd at the Chrysler Jefferson North Assembly Plant in Detroit, Obama shared his positive enthusiasm for how domestic automakers have rebounded.

"They thought it would be impossible for your company to make the kind of changes necessary to restore fiscal discipline and move towards viability. Today, for the first time since 2004, all three U.S. automakers are operating at a profit, the first time in six years," Obama told a cheering crowd.

"Last year, sales plummeted and manufacturers and suppliers across the country were forced to idle plants and furlough workers," the President went on to say. "Today, Chrysler is responding to more demand than anticipated by keeping this plant and others running through the usual summer shutdown. The same goes for GM's plants. Sales have rebounded. Across the supply chain, plants that wouldn't exist without the sacrifices made across this industry are running at nearly full capacity.

"Last year, many thought this industry would keep losing jobs, as it had for the better part of the past decade," Obama added. "Today, U.S. automakers have added 55,000 jobs since last June, the strongest job growth in more than 10 years in the auto industry."

Obama wrapped up his commentary by reiterating his confidence in the auto industry and beyond even as the domestic economy slowly recovers back from the worst downturn since the Great Depression.

"Don't bet against the American people," Obama declared. "We've got more work to do. It's going to take some time to get back to where we need to be, but I have confidence in the American worker. I have confidence in you. I have confidence in this economy. We are coming back."

During the president's visit on Friday, Chrysler Group chief executive officer Sergio Marchionne announced that Sterling Heights (Mich.) Assembly Plant, which was scheduled to close after 2012, will now remain open beyond that date.

In addition, Marchionne announced Chrysler will add nearly 900 jobs on a second shift of production, scheduled to start in the first quarter of 2011. To support that operation, suppliers will add nearly 500 jobs.

The top Chrysler executive attributed the plant developments to the decision the White House made more than a year ago.

"We were honored to have the president come to Jefferson North," Marchionne insisted. "It was because of the courageousness of his decision that Chrysler has been able to survive, and in fact thrive, a little more than a year after bankruptcy."

Later in the day, GM said that thanks to strong public interest in the Chevrolet Volt, the 340-mile extended range electric vehicle, it will increase U.S. production capacity of the new unit by 50 percent, from 30,000 units to 45,000 units, in 2012. 

The announcement came as Obama toured the Detroit-Hamtramck facility, where the Volt is being produced now for sale later this year. 

"The Chevrolet Volt provides drivers with the latest technology, outstanding innovation, and something no other electric vehicle can provide — peace of mind," stated Ed Whitacre Jr., GM's chairman and CEO.

 "We are very proud to host the President of the United States at this plant, where the future of the American automobile industry is being built today by the men and women of General Motors."

KBB: Always Easy to Forget

Soon after the president made his way through the heart of the Motor City, James Bell tried to quell some of the naysayers who are out to harp on the decisions to inject federal funds into GM and Chrysler. Bell is the executive market analyst for Kelley Blue Book's Kbb.com.

"With President Obama making visits to Chrysler and GM factories to tout the success thus far of the 2009 auto industry bailout and managed bankruptcy program, it will be easy for critics and opponents to see this as nothing more than mid-term election campaigning and grandstanding," Bell conceded.

"It is true that until the loans are paid in full, ‘the jury is still out' on complete success and whether or not any of this money was spent foolishly," Bell continued. "However, these visits give us a chance to stand back and remind ourselves surely what would have happened if no loans were made."

Bell went on to elaborate on the idea of what might have occurred if GM and Chrysler had been left without a financial lifeline.

"A truth of the auto industry is that companies like GM, Ford or Toyota are really just assemblers of parts and components provided by a vast network of vendors," Bell emphasized.

"Yes, they design, engineer and market the vehicles, and conduct most of the larger metal stamping and engine assembly, but the vast majority of what goes into the car in your garage is outsourced," he explained.

"If GM and Chrysler were allowed to go into liquidation, which looked like a certain result back in 2009, the negative ‘domino effect' on these suppliers would have been similar to the high-velocity flow of the recent Gulf of Mexico oil spill," Bell determined.

Bell believes untold jobs and companies would have been lost. He also thinks the bailout was much more than just keeping either GM or Chrysler in business.

"Saving GM and Chrysler was not the only goal, but also limiting the damage on these two before they could fall and level suppliers that also serve Ford, Nissan, Mercedes-Benz and others in the U.S.-based manufacturing community," Bell stressed.

As Bell mentioned, Obama did a lot of handshaking and delivered many talking points at the GM and Chrysler plants. However, what these automakers have in their financial future is what the KBB analyst wanted to stress.

"GM's anticipated IPO later this year and Chrysler's IPO possibly later in 2011 will be big steps toward putting the loan money back in the government's wallet and regaining the public's confidence — with interest," Bell highlighted.

"Yes, there is a political element to the plant visits, which will have plenty of scripted photo and sound-bite opportunities," he went on to say. "But this day also allows us to stand back and imagine what could have been … and it would not have been pretty."