Full-Throttle Push for Auto Bailout

By Julie Hirschfeld Davis

WASHINGTON (AP) -- The auto industry and business groups have mounted a lobbying onslaught to thwart GOP opposition to a Senate vote next week on Democrats' plan for a $25 billion emergency loan plan for U.S. carmakers.

Senior Democrats are drafting legislation that would carve out part of the $700 billion Wall Street bailout for loans to the three major U.S. auto companies in exchange for a government ownership stake in the companies.

They hope to push the measure through during a postelection session of Congress that begins Monday. General Motors(GM), Ford(F), and Chrysler are lobbying feverishly for Congress to approve the aid, citing an economic downturn that has choked off sales and frozen credit.

But the idea is running into resistance from Republicans and President Bush, who are reluctant to back any additional money for the struggling industry. House GOP leader John Boehner of Ohio issued a statement Thursday promising to oppose any new auto industry loans.

Senate Republican leader Mitch McConnell of Kentucky -- home to a General Motors and two Ford plants-- has been noncommittal about new aid. His office says Congress should instead speed release of $25 billion in loans approved by Congress last month to help automakers develop more fuel-efficient vehicles.

House Speaker Nancy Pelosi (D., Calif.) has yet to schedule a legislative session to consider the new loans as Democrats keep hunting for the votes to pass it.

"Right now, I don't think there are the votes," said Sen. Chris Dodd, D-Conn., chairman of the Senate Banking, Housing and Urban Affairs Committee. While supporting the proposal, Dodd cautioned against "bringing up a proposition that might fail." He suggested that Congress wait until President-elect Barack Obama is sworn in on Jan. 20 to provide further help to the carmakers.