US Senate seeks compromise on $25 bln auto bailout
By John Crawley
WASHINGTON, Nov 19 (Reuters) - Senate negotiators sought on Wednesday to craft a compromise plan to bail out distressed U.S. automakers as industry chief executives again pressed their case for urgent help in a second day of hearings.
Legislation proposed this week by Democrats seeking $25 billion in aid has stalled in the Senate, with Republicans promising vigorous opposition. Overall support for the measure appeared insufficient to overcome possible procedural hurdles, with time running short in the abbreviated post-election session to consider any legislation.
Senate Minority Leader Mitch McConnell said in a statement on Wednesday that a compromise effort "is the only proposal now being considered" that has any chance of becoming law during this week's session.
"There is a way forward that will help protect the jobs in the auto industry, while also protecting taxpayers," McConnell, a Kentucky Republican, said.
General Motors Corp GM.N, Ford Motor Co (F.N) and Chrysler LLC are burning through billions in cash monthly and have little to no ability to borrow in the private markets due to their poor financial health and the global credit crunch.
Chief executives from the three manufacturers warned at a House of Representatives hearing of potential industry failure and broader economic hardship without immediate government financial assistance.
"The industry has a critical need for liquidity," Ford Chief Executive Alan Mulally said.
The companies say bankruptcies are not an option.
Republicans and the White House oppose Democratic plans to extract $25 billion from the Treasury Department's financial services rescue fund to aid Detroit.
Democrats have resisted Republican calls to assist industry with up to $25 billion in federal technology loans approved in September to help manufacturers retool factories and make more fuel efficient vehicles.
Carl Levin, a Michigan Democrat and chief proponent of bailout efforts in the Senate, told reporters outside Wednesday's House hearing that an "effort is being made" to close the gap and provide a bridge loan to Detroit.
"The common goal is $25 billion," Levin said.
"We're trying to find a path that will get us to a common goal. It would be unthinkable for Congress not to be able to reach a conclusion when the leadership of the Congress, the president and president-elect all say they support bridge loans," Levin said.
Levin said there is no disagreement on imposing strict conditions, including limits on executive pay, a plan for the health of the industry, and taxpayer protections. (Additional reporting by Donna Smith and Rick Cowan, editing by Gerald E. McCormick)
