Schwarzenegger With Obama on Auto Bailout

Schwarzenegger: Rebuild America

Instead, Schwarzenegger argued the GOP should focus on rebuilding the nation's infrastructure.

"We need to rebuild America, fix the bridges, fix the highways, fix the buildings, tunnels and all of those kinds of things we need to do," he said. "And then we have to go and create great relationships with our partners overseas, with the world, and we have to build those relationships again. And we have to take care of health care. We have to take care of our environment. And we have to build an energy future. Those are the things that people want right now."

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Schwarzenegger: California Fires at 'Zero-Containment'

On the Obama transition so far, Schwarzenegger commented on rumors that Sen. Hillary Clinton, D-N.Y., is in the running to become secretary of state. The President-elect and his former rival met privately Thursday to discuss the position.

"I think she is a very very bright woman and very experienced. I think this could be a great move," he said.

But he also noted that it's equally important for the president to have a good working relationship with all the members of his Cabinet.

"When it comes to those kinds of positions, what is equally as important, and I know with my Cabinet, what is equally as important as who is qualified, is who can you work with. Who can you sit down with and really get in there and start becoming a partner [with] that sees things the way you see it. And also that you maybe want to learn from that person and admire that person so much that you want to pick up some pointers and learn from that person, so that they together can go out and do this."