Difficult days lie ahead: Obama

"I will not pretend the hard times are over. Difficult days lie ahead. More jobs will be lost. More plants will close. More dealerships will shut their doors, and so will many parts suppliers," Obama said, even as his administration is investing billions of dollars to save crisis-hit companies.

Obama said people should be ready for more sacrifices and difficulties ahead as his administration is trying its best to come out of the worst ever economic crisis the US is plunged into in a century.

"...what you're doing is making a sacrifice for the next generation... so that your children can grow up in an America that still makes things, that still builds cars, that still strives for a better future.

"As our auto workers and auto communities pass through these difficult times, we as a nation must do our part," he said.

Obama said his administration is accelerating the purchase of a federal fleet of cars to jump-start demand and give the industry a boost at a time when it needs one. "I'm calling on Congress to pass fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars," he said.

"These are important steps on the long road to overcoming a problem that didn't happen overnight and will not be solved overnight," he said.

"While the GM of the future will be different from the GM of past, I am absolutely confident that if well managed, a new GM will emerge that can provide a new generation of Americans with the chance to live out their dreams, that can out-compete automakers around the world, and they can once again be an integral part of America's economic future," Obama said.