WRAPUP 3-'Car czar' proposed for any U.S. automaker bailout

* "Car czar" would oversee any bailout

* Democrats, W.House reach deal on auto bailout funding

* Republican senator says plan so far not tough enough

By Thomas Ferraro and John Crawley

WASHINGTON, Dec 6 (Reuters) - A government "car czar" would oversee any bailout of U.S. automakers under proposed terms being negotiated by the White House and Congress for extending up to $17 billion in emergency loans that mainly aim to spare General Motors Corp (GM.N) and Chrysler LLC from bankruptcy.

Congressional and other sources familiar with the plan for oversight by an official within the executive branch said on Saturday that conditions were not final as Democratic leaders and the White House tried to cut a deal.

White House spokeswoman Dana Perino told reporters the assistance would only be considered for companies "willing to make the difficult decisions across the scope of their businesses to be viable and competitive" and in cases where strong taxpayer protections could be guaranteed.

Reeling from a plunge in sales they blame largely on the credit crunch and recession, once-vaunted GM, Chrysler LLC CBS.UL and Ford Motor Co (F.N) sought $34 billion from Congress this week to forestall possible collapse.

There is wide concern that insolvency at one of the big manufacturers would devastate the deeply interconnected industry, including suppliers and dealers.

"That's our view," GM Chief Executive Rick Wagoner told Congress on Friday at a hearing.

Perino added that discussions between the White House and leaders of both parties had been "constructive."

Senate Banking Committee Chairman Christopher Dodd of Connecticut and House Financial Services Chairman Barney Frank of Massachusetts took the lead in writing legislation for majority Democrats.

'CAR CZAR' PROPOSAL

One leadership aide said both sides favored creation of a "car czar" role within the executive branch to oversee funds and ensure conditions were met.

Congressional aides and other sources said negotiators and the White House were trading draft proposals, and planned to work through the weekend.

The details were to supplement a framework struck late on Friday on the amount of aid -- up to $17 billion -- and the source of funding, an Energy Department loan program approved in September to help automakers make more fuel-efficient cars. The bridge loans are designed to carry industry into spring.