Both candidates vow to aid ailing auto industry

Obama, who has supported doubling the loan funding to $50 billion, wants to keep "every option on the table," said Jason Furman, Obama's economic adviser.

Auto industry supporters see the presidential candidates as future allies. Michigan Gov. Jennifer Granholm, an Obama supporter, said the Illinois senator's support for the low-interest loans and additional funding indicates "he does not want to see this auto industry go under."

Rep. Fred Upton, R-Mich., meanwhile, credits McCain with helping convince wavering Republicans and the White House that the retooling loans were needed. During a tour of a GM facility in July, Upton recalled McCain telling GM Chairman and CEO Rick Wagoner, "I know the importance of this industry to the country. When you need something, you call me direct. I'm going to be there."

Obama has set an ambitious goal to get 1 million plug-in vehicles on the roads by 2015 and expressed interest in converting the White House fleet to plug-ins, if security allows. He has promised $4 billion in loans and tax credits to U.S. automakers to modernize older assembly plants to produce advanced vehicles.

For consumers, he's discussed a $7,000 tax credit for buyers of early model plug-ins, similar to a measure approved by Congress last month.

McCain has proposed a $300 million prize for researchers trying to develop a better automobile battery. Advanced batteries are crucial for the Chevrolet Volt, an electric vehicle GM plans to begin selling in 2010. McCain would also offer $5,000 tax credits for consumers who buy new zero-emission vehicles.

On fuel efficiency, Obama has urged a 4 percent annual increase in the standards so the fleet of new cars and trucks would reach 40 miles per gallon by 2022. That's more aggressive than a plan adopted by Congress last year requiring the fleet to hit 35 mpg by 2020.

McCain has not proposed increases beyond the new requirements but has a mixed record on fuel economy standards. With Sen. John Kerry, D-Mass., in 2002 he proposed raising fleetwide standards to 36 mpg by 2016, but opposed increasing the standards in 2003 and 2005.

The auto industry is watching California's effort to cut carbon dioxide emissions by 30 percent by 2016. At least 16 states want to impose similar rules, which would boost fuel efficiency in new vehicles to about 36.8 mpg, but the Environmental Protection Agency denied California's request for a waiver from federal regulations.

Both McCain and Obama have said they would sign the request but have expressed support for a single, national standard.

David Cole, president and CEO of the Center for Automotive Research, said both candidates have recognized the trouble facing the auto industry, leaving few major differences between the two senators.

"We're in a period where the politics are almost irrelevant when you're looking at this kind of an economic challenge," he said.

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