Pelosi Supports Help for Automakers

By David Espo

WASHINGTON (AP) -- House Speaker Nancy Pelosi called for "emergency and limited financial assistance" for the battered auto industry and urged the outgoing Bush administration to join lawmakers in reaching a quick compromise.

Four days after dismal financial reports from General Motors and Ford(F), Pelosi backed legislation Tuesday to make the automakers eligible for help under the $700 billion bailout measure that cleared Congress in October.

In a written statement, the California Democrat said the aid was needed "in order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry."

"Congress and the Bush administration must take immediate action," she added. Administration officials have concluded that the bailout bill that passed earlier does not permit loans to the auto industry, but lawmakers are expected to return to the Capitol for a brief postelection session beginning next week.

Senate Majority Leader Harry Reid, D-Nev., also supports help for the industry, and he issued a statement saying Democrats were "determined to pass legislation that will save the jobs of millions" as part of a postelection session.

"This will only get done if President Bush and Senate Republicans work with us in a bipartisan fashion, and I am confident they will do what is right for our economy," he said.

The plight of the industry has drawn attention from the White House and the incoming Obama administration in recent days, as well as among lawmakers.