President-elect Barack Obama is praising President Bush's decision to offer more than $17 billion in rescue loans for the deeply troubled auto industry.

Obama called it "a necessary step to help avoid a collapse in our auto industry that would have devastating consequences for our economy and our workers."

In a statement released Friday, Obama said U.S. automakers now must work with labor, dealers, creditors and suppliers "to make the hard choices necessary to achieve long-term viability."