White House is open to ideas to help auto industry

DETROIT -- Treasury Secretary Henry Paulson called autos a "critical industry" Wednesday but said a $700 billion financial rescue program wasn't designed for them. The White House, meanwhile, said it is open to new ideas.

"We are going to work with Congress, we are open to their ideas," White House spokeswoman Dana Perino said. "If they are going to amend or accelerate those funds we will certainly look into their ideas and work with them."

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

Paulson said Congress could try to make funding more available to the auto industry as part of a $25 billion loan program approved in September to develop fuel-efficient vehicles. But, he cautioned that "any solution has got to be leading to long-term viability" for auto companies.

Pelosi, in her statement, said, "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."

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%.