President Obama reassures consumers; warrantees will stand, auto sales taxes can be deducted - WDRB 41 Louisville News

President Obama reassures consumers; warrantees will stand, auto sales taxes can be deducted

President Obama on Monday announced several steps to reassure consumers and improve the chances that U.S. automakers will be able to sell their cars and trucks.

The president said the government will now stand behind warrantees issued by the carmakers, a sweeping new guarantee that some in Congress had sought.

He also noted that the economic stimulus legislation he recently signed allows the purchasers of new domestic cars to deduct the cost of any sales and excise taxes. Obama said this provision could "save families hundreds of dollars and lead to as many as 100,000 new car sales."

He also said funds ticketed for the purchase of new vehicles for government agencies would be spent as quickly as possible. The president was flanked by numerous administration officials as he spoke, including Treasury Secretary Tim Geithner.

Obama spoke at the White House with U.S. automakers at yet another crossroads. As the president noted, the industry has shed more than 400,000 jobs in the past year as the recession took hold.

Officials announced last week bailout funds would be made available to companies that supply the automakers, an attempt to keep them afloat.

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