WASHINGTON, Oct 14, 2011 (AFP) - President Barack Obama will take his South Korean counterpart to Michigan on Friday to tout the benefits of a free trade pact as well as his own auto industry rescue in a key 2012 electoral state.
Obama and President Lee Myung-Bak, who shared a sumptuous state dinner at the White House on Thursday after a day hailing the US-South Korea alliance, will tour a General Motors assembly plant in Orion township.
The plant was saved by the controversial auto industry bailout for GM and Chrysler that Obama ordered in 2009, and assembles the new Chevrolet Sonic subcompact car, originally engineered for GM Korea but now built in Michigan.
"Two years ago, during GM's bankruptcy restructuring, the plant the president will visit in Orion, Michigan was set to be closed down," a White House official said on condition of anonymity.
"The subcompact expertise and joint venture with GM Korea has saved the Orion plant and its 1,750 jobs."
The White House says that Obama's auto bailout plan saved over a million jobs of Americans working for auto firms and related industries throughout the industrial midwest, a key battleground in next year's presidential election.
Since GM and Chrysler emerged from restructuring, the American auto industry has created 128,000 jobs, the official said.
The visit to GM is also symbolic, because at one point the long-delayed free trade pact endorsed by Congress on Wednesday was held up by a dispute over auto market access between Seoul and the Obama administration.
But the two sides eventually thrashed out an agreement on eliminating non-tariff barriers that restricted US access to South Korea's auto market and raised the cost of producing American vehicles for sale there.
The deal will immediately reduce South Korean tariffs on US autos by half, from eight percent to four percent, and fully eliminate them within five years.
"As a former executive, President Lee will understand when I say that just as Americans buy Hyundais and Kias, I hope that South Koreans will buy more Fords, Chryslers and Chevys," Obama said at a press conference on Thursday.
