* Obama says Richardson a strong diplomat for business
* California Rep. Xavier Becerra considered for USTR
* Obama team was consulted on Treasury's bailout plans
By Caren Bohan and Jeff Mason
CHICAGO, Dec 3 (Reuters) - U.S. President-elect Barack Obama said on Wednesday struggling automakers have put forward a "more serious" restructuring proposal to Congress but withheld judgment on the plans until hearings are held.
At a news conference, Obama said Congress was right to demand a more detailed restructuring plan before deciding on a bailout for General Motors, Ford Motor and Chrysler LLC.
Obama, who takes over from President George W. Bush on Jan. 20, was pressed about the automakers' plight after he named rival-turned-supporter Bill Richardson as his secretary of commerce.
He called the New Mexico governor a perfect ambassador for U.S. business interests in the midst of deep global economic turmoil.
Obama has unveiled a series of top staffing picks in the last 10 days, putting him far ahead of recent presidents in the pace at which he has nominated the officials who will help run his administration.
The president-elect was narrowing his choices for the job of chief trade negotiator, as California congressman Xavier Becerra emerged as a leading candidate for that position.
Becerra is considered a friend of U.S. labor groups. He voted against the U.S.-Central American Free Trade Agreement in 2005. This year, he joined other Democrats in blocking consideration of a free trade agreement with Colombia.
But he has supported other trade deals, including one Congress approved last year with Peru.
The auto industry bailout is one of a host of problems facing Obama when he takes office amid the worst U.S. economic crisis since the 1930s.
A month after his Nov. 4 victory over Republican John McCain, the former Illinois senator has picked his economic and national security teams, including New York Sen. Hillary Clinton as secretary of state and New York Federal Reserve Bank President Timothy Geithner as Treasury secretary.
His selections so far have been aimed at showing he can tackle the recession deftly while also meeting his goal of improving the U.S. image abroad.
AMBASSADOR FOR U.S. BUSINESS
Obama said Richardson would be uniquely suited to help represent U.S. business interests around the world.
Richardson, whose appointment must be confirmed by the U.S. Senate, also served as a congressman and U.N. ambassador and was energy secretary under President Bill Clinton.
"It's time to not just address our immediate economic threats, but to start laying the groundwork for long-term economic prosperity -- to help American businesses grow and thrive at home, and expand our efforts to promote American enterprise around the world," Obama said.
Richardson, the first Latino named to Obama's Cabinet, said there was a vital role for the Commerce Department in the economic recovery.
He also made some remarks in Spanish, thanking his supporters in the Latino community.
The commerce secretary is seen as the voice of the U.S. business community in the White House and is charged with promoting American business interests overseas.
"Boosting commerce between states and nations is not just a path to solvency and growth, it's the only path," Richardson said.
On the issue of whether the automakers should get a bailout, Obama said any help should be "based on realistic assessments of what the auto market is going to be and a realistic plan for how we're going to make these companies viable over the long term."
"It appears, based on reports that we've seen, that this time the executives from these automakers are putting forward a more serious set of plans," he said.
Executives of the struggling auto industry are to appear before Congress on Thursday and Friday. Obama said he wanted to wait to hear what is said in the hearings.
Obama also said he was reviewing whether taxpayers were getting the maximum amount of aid possible from a $700 billion government financial rescue package and indicated particular interest in helping prevent mortgage foreclosures.
The U.S. Treasury is weighing whether to seek permission from Congress to begin using the second half of the bailout package.
An Obama aide said the president-elect's team was consulted about the administration's plans.
"They reached out to us a couple of days ago," the Obama aide said, noting that during the transition, the administration has been keeping the Obama team informed about their decisions, though it is "not a joint effort policywise."
"Our advice to them was to immediately start consulting the Hill leadership," the aide said.
Obama pointed out in the news conference that a study by the Government Accountability Office had found flaws in how the bailout package had been handled.
"We're seeing some areas where we can be doing better in making sure that this money is ... effective in shoring up our financial markets," he said.
(Additional reporting by Andy Sullivan, Mark Felsenthal, Doug Palmer and Karey Wutkowski, Writing by Caren Bohan and John Whitesides; Editing by David Wiessler)