081119-Auto Makers Need Help

Auto Makers Need Help

The leaders of the so-called Big Three of the U.S. auto industry-- General Motors, Ford and privately-held Chrysler-- were on the hot seat on Capitol Hill as they pleaded with members of the Senate Banking Committee to pass a 25 billion dollar rescue package --aimed at bolstering struggling automakers.

GM CEO Rick Wagoner warned of dire consequences for the auto industry if just one of Detroit's Big Three had to file for bankruptcy.

SOUNDBITE: GM CEO Rick Wagoner, saying (English):

"This is all about a lot more than just Detroit. It's about saving the U.S. economy from a catastrophic collapse."

Democrats in the Senate support a loan package arguing that up to three million U.S. jobs would be lost from an auto industry collapse.

But even supporters of a congressional bailout like Senator Chuck Schumer of New York warned against giving the automakers a blank check.

SOUNDBITE: Senator Chuck Schumer, saying (English):

"We must be assured that whatever aid we give you is accompanied by a real plan that shows you recognize the direction that this industry must take in order not to survive but to thrive."

Most Republicans are opposed to an auto industry bailout arguing that the rescue package is not a wise use of taxpayer money.

Senator Richard Shelby is the ranking member of the Banking Committee.

SOUNDBITE: Senator Richard Shelby saying (English):

"Are we here in the Senate being asked to facilitate a stronger more competitive auto manufacturing sector or to perpetuate market failure."

While lawmakers debated the merits of a congressional auto industry bailout, the Bush Administration let it be known that the White House is opposed to such a loan package.

Treasury Secretary Henry Paulson.

SOUNDBITE: Treasury Secretary Henry Paulson, saying (English):

"I believe that any solution must be a solution that leads to long-term viability -- sustainable viability here. I don't see this as the purpose of the TARP."

Analysts say it's unlikely that a bailout plan gains Congressional approval during this week's lame duck session -- which means as automakers continue to bleed cash, a rescue package may be one of the first acts that Barack Obama undertakes after he's sworn in as president in January.

Jon Decker, Reuters.

bolster to support or strengthen
undertake To take upon oneself; decide or agree to do: undertake a task.