Bush may stick it to auto industry one last time

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President George W. Bush's final snub of Michigan could be a veto of $50 billion worth of loans being sought by Detroit's automakers.

Congress agreed in December on lending the Detroit Three automakers and their suppliers $25 billion to help automakers meet more stringent federal fuel economy requirements.

But Congress still must appropriate the money, and Bush must sign the bill. With economic conditions deteriorating, the automakers may seek as much as $50 billion to avoid bankruptcy.

U.S. Sen. Debbie Stabenow, D-Lansing, who spearheaded efforts last year that led to the creation of the $25 billion Advanced Technology Vehicles Manufacturing Incentive Program, told me she's concerned about how Bush will react to the loan request.

She should be. Bush has been no friend of the auto industry during his nearly eight years in office.

I recall covering a contentious Detroit gathering in the early Bush years involving then-Commerce Secretary Don Evans and a handful of major Michigan auto suppliers.

Suppliers told Evans they were being hurt by tariffs on imported steel that Bush approved and alleged violations of trade rules by China.

Some came away seething from that meeting after Evans repeatedly told them the Bush tax cuts were the answer to their salvation.

We've seen how that worked out.

Bush since has been openly critical of Detroit's automakers. Two years ago, he pooh-poohed federal assistance for the Detroit Three, saying they needed to make "a product that's relevant."

And after agreeing to meet with the automakers' chief executive officers in 2005, Bush canceled two scheduled meetings over the next 14 months before sitting down with them in November 2006.

Bush's coolness toward Detroit likely is a result several factors.

Politically, Michigan is a blue state that didn't vote to elect or re-elect Bush.

Much of the rest of the country doesn't seem to care whether domestic automakers survive.

And the president, to put it mildly, isn't a fan of powerful labor unions such as the United Auto Workers.

Automakers say they aren't looking for a bailout, such as the one Washington crafted for investment bank Bear Stearns and the one being put in place for mortgage lenders Fannie Mae and Freddie Mac, should it be needed.

Instead, they're trying to sell the loan package as fulfilling a costly, unfunded federal mandate that requires them to boost fuel economy of their cars and trucks to an average 35 miles per gallon by 2020.

Lawmakers are expected to consider the loan request when they return to Washington this month.

But it's possible action on the loans might not come until a new president takes office in January.

That could be the best outcome for automakers, if they can last that long: Presidential candidates John McCain and Barack Obama support aiding Detroit.