Published: Saturday, December 6, 2008
Bush presses for Big 3 bailout
WASHINGTON -- Amid fresh factory layoffs, President Bush warned Friday that at least one of the Big Three automakers may perish in the deepening economic crisis and urged a slow-to-act Congress to act quickly on a multi-billion-dollar industry bailout.
"We are going to have to have some give here," replied Massachusetts Rep. Barney Frank, a senior House Democrat, expressing optimism that a compromise might be possible. It wasn't clear whether he was prodding Bush, House Speaker Nancy Pelosi, D-Calif. -- who disagree sharply on the terms of any bailout -- or both of them.
There also were fresh calls for the Federal Reserve to come to the rescue of General Motors Corp., Ford Motor Co. and Chrysler LLC., possibly in the form of low-cost loans. And Frank said he had talked with Timothy Geithner, treasury secretary-designate for President-elect Barack Obama, a possible sign of involvement by the incoming administration.
"I am concerned about the viability of the automobile companies," a somber Bush said as a fresh report showed that employers slashed 533,000 jobs in November.
The president added, "I'm concerned about those who work for the automobile companies and their families. And likewise, I am concerned about taxpayer money being provided to those companies that may not survive." Bush did not elaborate, but executives at both GM and Chrysler have warned that their storied corporations could collapse by year's end.
In addition to its major previous layoffs, GM announced it will cut shifts at factories in Lorain, Ohio, Orion Township, Mich. and Oshawa, Ontario in Canada in February as a result of slumping auto sales. About 2,000 jobs were involved, bringing the year's total to 11,000.
The chief executives of GM, Ford and Chrysler, testified for a second consecutive day before Congress in support of their plea for a $34 billion bailout in the form of loans. "We believe this is the least costly alternative," said Chrysler chief executive Bob Nardelli.
For the day, at least, their appeals were overtaken by the severity of the national job loss figures, the worst in 34 years.
Frank said repeatedly that the unemployment statistics had quieted talk of allowing one or more of the automakers to go bankrupt.
"I think it's fair to say that the jobs report today, this disastrous jobs report, has heightened the interest in doing something." With trademark wit, he added, "If we are lucky we will come out with a bill here that nobody likes, because any bill that any individual liked couldn't pass."
Bush renewed his call for Congress to rewrite an existing $25 billion program intended to help the industry make more fuel-efficient vehicles. But the president did not explicitly foreclose other options, and Republican aides said the White House might be open to some sort of compromise.
Congressional budget analysts have said tapping the fuel-efficiency program for a broader auto bailout would net only $7.5 billion in short-term cash. Pelosi and environmentalists oppose making use of those funds. Instead, they want the administration to take money from a $700 billion financial industry bailout that cleared Congress last fall.
Absent a compromise, the Senate appears likely to convene next week for a series of votes on various alternatives, all of which would be doomed to failure. Any measure would require a 60-vote majority, an impossibility barring an agreement that involves both parties.
Pelosi has not yet said whether the House will convene next week to consider legislation.
"We are going to have to have some give here," replied Massachusetts Rep. Barney Frank, a senior House Democrat, expressing optimism that a compromise might be possible. It wasn't clear whether he was prodding Bush, House Speaker Nancy Pelosi, D-Calif. -- who disagree sharply on the terms of any bailout -- or both of them.
There also were fresh calls for the Federal Reserve to come to the rescue of General Motors Corp., Ford Motor Co. and Chrysler LLC., possibly in the form of low-cost loans. And Frank said he had talked with Timothy Geithner, treasury secretary-designate for President-elect Barack Obama, a possible sign of involvement by the incoming administration.
"I am concerned about the viability of the automobile companies," a somber Bush said as a fresh report showed that employers slashed 533,000 jobs in November.
The president added, "I'm concerned about those who work for the automobile companies and their families. And likewise, I am concerned about taxpayer money being provided to those companies that may not survive." Bush did not elaborate, but executives at both GM and Chrysler have warned that their storied corporations could collapse by year's end.
In addition to its major previous layoffs, GM announced it will cut shifts at factories in Lorain, Ohio, Orion Township, Mich. and Oshawa, Ontario in Canada in February as a result of slumping auto sales. About 2,000 jobs were involved, bringing the year's total to 11,000.
The chief executives of GM, Ford and Chrysler, testified for a second consecutive day before Congress in support of their plea for a $34 billion bailout in the form of loans. "We believe this is the least costly alternative," said Chrysler chief executive Bob Nardelli.
For the day, at least, their appeals were overtaken by the severity of the national job loss figures, the worst in 34 years.
Frank said repeatedly that the unemployment statistics had quieted talk of allowing one or more of the automakers to go bankrupt.
"I think it's fair to say that the jobs report today, this disastrous jobs report, has heightened the interest in doing something." With trademark wit, he added, "If we are lucky we will come out with a bill here that nobody likes, because any bill that any individual liked couldn't pass."
Bush renewed his call for Congress to rewrite an existing $25 billion program intended to help the industry make more fuel-efficient vehicles. But the president did not explicitly foreclose other options, and Republican aides said the White House might be open to some sort of compromise.
Congressional budget analysts have said tapping the fuel-efficiency program for a broader auto bailout would net only $7.5 billion in short-term cash. Pelosi and environmentalists oppose making use of those funds. Instead, they want the administration to take money from a $700 billion financial industry bailout that cleared Congress last fall.
Absent a compromise, the Senate appears likely to convene next week for a series of votes on various alternatives, all of which would be doomed to failure. Any measure would require a 60-vote majority, an impossibility barring an agreement that involves both parties.
Pelosi has not yet said whether the House will convene next week to consider legislation.
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