Senate Bails on Auto Bailout: What Next?
White House May Reconsider Using TARP Money to Prevent Industry Collapse
Obama's Push for Bailout Was Rejected
Chrysler, too, said it would "continue to pursue a workable solution to help ensure the future viability of the company."
Efforts started to unravel midday Thursday, when Senate Minority Leader Mitch McConnell announced on the Senate floor that he would oppose the earlier bipartisan auto rescue package backed by Democrats and the White House, and instead back Corker's proposal.
"A lot of struggling Americans are wondering where their bailout is," said McConnell, arguing that, at some point, the bailouts have to stop, and that the Wall Street bailout he supported was for the entire economy and not just one industry.
McConnell's announcement came at the same time that President-elect Barack Obama was speaking in Chicago, saying, "we cannot simply stand by and watch this industry collapse."
Obama said that "doing so would lead to a devastating ripple effect throughout our economy." He said the government should provide a short-term loan and said he hopes an agreement can be reached this week on Capitol Hill.
ABC News' Kirit Radia, Michael James, Rachel Martin and Dean Norland contributed to this report.
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