White House: No immediate auto aid deal
WASHINGTON -- TThe Bush administration tossed out no lifeline for the teetering auto industry Sunday and a Republican who blocked $14 billion in loans said it appeared the White House had not decided what to do.
With President George W. Bush on an unannounced trip to Iraq, White House officials said they did not expect to make an announcement either Sunday or Monday.
The administration is considering ways to provide emergency aid to General Motors Corp. and Chrysler LLC, which have said they could run out of cash within weeks without federal aid.
Sen. Bob Corker, a Tennessee Republican, said he spoke with the White House early Sunday. "I don't think they yet know what they're going to do," he said. Ron Gettelfinger, the president of the United Auto Workers, said the union had not held discussions with the White House.
The aid is expected to benefit General Motors and Chrysler and discussions involve the amount of funding and any potential conditions. Ford Motor Co. has said it has enough cash to survive 2009 but asked Congress for a line of credit in case the financial markets deteriorate.
"I'm optimistic they're going to do something significant. I don't think the White House wants bankruptcy at one of the Big Three automakers as part their legacy," said Sen. Sherrod Brown, an Ohio Democrat.
Last week, Congress failed to approve $14 billion in loans to help the automakers. The plan would have provided short-term financing to the industry and create a "car czar" who would ensure that the money would transform the Detroit automakers into competitive companies.
The administration, following the legislative defeat, said they were considering several options, including using money from the $700 billion financial bailout fund to provide loans to the carmakers.
Corker and other Republicans sought a compromise that would have insisted the carmakers to restructure their debt and bring wages and benefits in line with those paid by Japanese automakers Toyota, Honda and Nissan at their plants in the United States. The legislation died when Republicans demanded upfront pay and benefit concessions from the United Auto Workers that union leaders rejected.
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