Obama cancels visit to Indianapolis hybrid vehicle factory

President Obama

Indianapolis - President Barack Obama has canceled his trip to Indiana.

The White House announced Thursday night that Obama had postponed a scheduled trip to Indianapolis for Friday morning.

The news came after Obama and congressional leaders failed to reach agreement on a compromise to cut spending and head off a midnight Friday government shutdown.

Obama was scheduled to visit Allison Transmission, a supplier plant that makes transmission systems for hybrid vehicles. The president's last stop in Indiana was a November visit to a Chrysler transmission plant in Kokomo, where he and Vice President Joe Biden lauded the factory as proof that the federal bailout of struggling U.S. automakers succeeded.

Indiana Democratic Chairman Dan Parker says the visit was not going to be part of the president's re-election campaign. He said the goal of the visit was to highlight the state's hybrid manufacturing sector.

Obama carried Indiana in 2008, defeating Sen. John McCain by 26,000 votes.

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