Chu touts auto bailout, tougher fuel standards

Energy Secretary Steven Chu is touting the $80 billion auto industry bailout in 2009, a rescue package that has drawn attacks from GOP presidential frontrunner Mitt Romney.

“President Obama refused to sit back and watch the industry and potentially more than 1 million jobs fade away,” Chu said at a speech in Detroit during the major auto show. “He made difficult and often unpopular choices to provide support to GM and Chrysler and to prevent catastrophe for the industry, the economy and auto communities across the country.”

Chu added: “In return, the president required GM and Chrysler to restructure to become more competitive. Now, only a few years after its darkest days, the U.S. auto industry is making a comeback.”

Democrats see Romney's opposition to the bailout as a vulnerability for the former Massachusetts governor in a potential general-election battle against President Obama.

The Energy secretary, one of multiple administration officials to attend the auto show, also used the speech to make the case for increased auto mileage standards.

The Obama administration is boosting auto mileage standards for model years 2017-2025 to reach 54.5 miles per gallon, the second major increase under Obama.

Chu’s speech at the Detroit Economic Club argues the tougher standards are an economic boost in addition to reducing U.S. oil consumption by 2.2 million barrels per day by 2025.

"[T]hese standards will help U.S. manufacturers compete in overseas markets like Europe and Japan, which already have tough standards,” Chu said.

“Finally, they will drive American innovation as industry develops advanced combustion technologies, lighter and stronger materials, improved electric vehicle components, and a host of other products. This can lead to stronger companies, whole new industries and more jobs in Michigan,” he added, according to his prepared remarks.