(Updated to add Obama statements in the eighth paragraph.)
By Josh Mitchell Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- Congressional Democrats are ratcheting up pressure on the Bush administration to help Detroit's beleaguered auto makers under its banking rescue plan, signaling doubts about Congress's ability to pass an aid package before the end of the year.
On the day when General Motors Corp. (GM) and Ford Motor Co. (F) reported abysmal third-quarter results, Rep. Sander Levin, D-Mich., echoed other Democrats' calls for the administration to use some of its $700 billion banking rescue plan on the auto industry.
The auto makers' latest earnings reports are a striking development "compelling the U.S. government to act, to provide bridge money so that they can survive," Levin said Friday in an interview with Dow Jones Newswires.
"I think there's a growing realization that there's action necessary this month," Levin added, saying Congress would be forced to pass a package if the Bush administration didn't act.
Senate Majority Leader Harry Reid, D-Nev., after meeting with executives of Detroit's Big Three auto makers Thursday, also called on the administration to use existing authority to help the industry.
The White House Friday appeared to stick to its stance that the banking rescue plan wouldn't be used on auto makers. White House spokesman Tony Fratto pointed out that the administration is moving to accelerate a loan program to help auto makers modernize their plants. "If Congress has any interest in going beyond that, that's a decision that they're going to have to make," Fratto told reporters.
Congressional Democrats have talked about providing an additional $25 billion in loans, on top of the $25 billion program to modernize plants, as part of a second economic-stimulus package. But President Bush hasn't indicated whether he would support such a package. And there are questions about whether Congress could hammer out such a deal and get it passed before the end of the year.
Speaking to reporters Friday, President-elect Barack Obama said he has asked advisors to explore ways under current law and through additional legislation to aid auto companies.
"The news coming out of the auto industry this week reminds us of the hardship it faces - hardship that goes far beyond individual auto companies to the countless suppliers, small businesses and communities throughout our nation who depend on a vibrant American auto industry," Obama said. "The auto industry is the backbone of American manufacturing and a critical part of our attempt to reduce our dependence on foreign oil."
In the interview Friday, Levin said any aid package would include conditions for auto makers such as limits on executive compensation and granting stock warrants to the government.
The United Auto Workers union has ruled out making concessions in exchange for government aid to the industry, its chief lobbyist told Dow Jones Newswires Friday.
The need for assistance became more acute as GM and Ford posted third-quarter results. GM said it burned through another $6.9 billion in the September quarter, while Ford burned through $7.7 billion.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com
(Henry J. Pulizzi contributed to this report.)
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(END) Dow Jones Newswires
November 07, 2008 16:59 ET (21:59 GMT)

Publié le 07 novembre 2008 Copyright © 2008 Dowjones