White House sees GM remaining competitive

WASHINGTON (Reuters) - The White House on Tuesday said the $39 billion 2007 loss posted by General Motors Corp was a sign that the industry was going through tough times, but that it would ultimately pull through the slump.

"They're trying to restructure in ways that can help keep them competitive in the future, and we're confident that over time that they're going to be successful in doing that," White House spokeswoman Dana Perino told reporters.

Besides reporting the record loss, GM said it would offer buyouts or early retirements to all of its U.S. hourly workers represented by the United Auto Workers union.

"Obviously the GM report reflects what we've known for some time in the U.S. automotive industry, which is they're going through difficult times as buyers -- consumers -- are changing their habits in the type of car they want to buy," Perino said.

While the U.S. economy has been seesawing in recent months, she said it was important to keep it growing to ensure the car industry, as well as others, remained healthy.

Perino pointed to the $152 billion economic stimulus package Congress approved last week and U.S. President George W. Bush plans to sign on Wednesday as one way they were trying to prevent the economy from slipping into recession.

Besides tax rebates to individuals, the package includes incentives for businesses to invest, such as permitting companies to immediately deduct half of the cost of purchasing new equipment.

(Reporting by Jeremy Pelofsky, editing by Lisa Von Ahn and Gerald E. McCormick)