W.House says Democrats heading for "gridlock" on autos

WASHINGTON (Reuters) - The White House on Friday said it stood ready to accelerate loans to the troubled auto industry, but that congressional Democrats were headed for "partisan gridlock" by proposing to use funds from a $700 billion financial rescue package.

In some of the strongest language so far in opposition to using the rescue package for automakers, the White House said Congress should instead work to speed up a $25 billion loan program that is already appropriated.

"We were seeking a bipartisan path forward using that existing legislation that just needed to be amended," White House spokeswoman Dana Perino said.

"And unfortunately it's become clear that congressional Democrats are instead choosing a path that will only lead to partisan gridlock because they are focusing only on the Troubled Asset Relief Program," she said.

Perino said the White House was prepared to act quickly to accelerate the loans if Congress moved in that direction. "We stand ready to accelerate the funds as soon as Congress acts. We believe the opportunity to help the auto companies is there for the taking," she said.

(Reporting by Tabassum Zakaria; Editing by Dan Grebler)