Obama hopeful auto bailout deal possible this week

CHICAGO (Reuters) - President-elect Barack Obama said on Thursday he hoped a congressional deal to bail out the struggling U.S. auto industry could be reached this week, saying again that Detroit's "Big Three" automakers could not be allowed to collapse.

Obama told a news conference he remained in favor of short-term government assistance to the industry that would keep it operating and accountable to the U.S. taxpayers.

"The legislation in Congress right now is an important step in that direction and I'm hopeful that a final agreement will be reached this week," he said.

A $14 billion bailout measure passed the Democrat-controlled House of Representatives on Wednesday, but faced an uphill climb in the Senate, where more Republican support will be necessary to win passage.