Pelosi calls for auto industry help to be on House agenda

DETROIT -- The House of Representatives may reconvene for a lame-duck session to work on legislation that would provide financial assistance to the automakers, Speaker Nancy Pelosi said Tuesday.

"In order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry, Congress and the Bush administration must take immediate action," Pelosi said in a statement.

The Senate also plans to address needs in the auto industry, Senate Majority Leader Harry Reid said in a statement. The Senate was already scheduled to be in session.

The automakers, which have been struggling all year, went into a tailspin in September and October as the new car market collapsed amid the credit lockup and falling consumer confidence. Sales in October were the lowest since 1982.

Tuesday, shares of both fell to record lows. GM closed at $2.92, down 13%, a 65-year low. Ford fell to $1.80, down 6.8%.

In an attempt to save cash, GM has said it is postponing some future product development and has eliminated white-collar retiree health care and contributions to 401(k) retirement accounts. On Tuesday, it also announced that it isn't sending executives to the Los Angeles auto show next week, and won't show the new Buick it had intended to give its U.S. debut there.

The Bush administration has been focused on accelerating loans recently funded but yet to be granted. They are part of a program in the energy law that was intended to help automakers retool plants for producing more energy-efficient cars.

Democrats are looking to provide more through some sort of direct loans with fewer limitations. President-elect Barack Obama has said help for the automakers is one of his top priorities.