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Automakers say Obama win could increase federal funding

DETROIT - U.S. automakers allies in Congress said yesterday Sen. Barack Obama's presidential election victory could help U.S. automakers line up federal funding needed for them to survive the current economic slump.

DETROIT - U.S. automakers allies in Congress said yesterday Sen. Barack Obama's presidential election victory could help U.S. automakers line up federal funding needed for them to survive the current economic slump.

Obama made it clear during his campaign that he understood the industrys' problems and would work to preserve the industry, U.S. Sen. Carl Levin (D., Mich.) said.

Levin said he was told yesterday by Jason Furman, Obama's senior economic adviser, that government aid was atop Obama's agenda.

Levin noted that Obama expressed support for doubling an Energy Department loan program for automakers to develop fuel-saving technology to $50 billion from $25 billion.

The senator said he and members of Michigan's congressional delegation would pursue several funding options to help the industry, including the $700 billion Wall Street bailout or access to capital from the Federal Reserve.

General Motors Corp. and Ford Motor Co. are to release tomorrow their third-quarter results, which almost certainly will show billions in losses.

Analysts say GM could close more plants, but Ford said it likely would do temporary factory shutdowns and overtime cuts at some of its car plants.

GM also is talking with Chrysler majority owner Cerberus Capital Management L.P. about GM's acquiring Chrysler. GM reportedly is after Chrysler's roughly $11 billion cash stockpile and is seeking federal aid to make the deal happen.