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Congress sends White House auto aid plan with 'car czar'
Congressional Democrats sent the White House an emergency $15 billion auto bailout plan Monday, complete with provision of a "car czar" to oversee the industry's reinvention of itself.
- Agencies
- Published: 10:39 December 9, 2008
- At first blush, White House officials suggested privately that the draft plan might fall short of principles behind a broad agreement to give long-term financing only to viable companies.
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Washington: Congressional Democrats sent the White House an emergency $15 billion auto bailout plan Monday, complete with provision of a "car czar" to oversee the industry's reinvention of itself.
The Bush administration said there had been progress toward agreement but pressed further negotiations into the night.
The measure would rush bridge loans to Detroit's struggling Big Three but would also demand that the auto industry restructure itself in order to survive and would put an overseer chosen by President George W. Bush in charge of monitoring that effort, according to the draft obtained by The Associated Press.
At first blush, White House officials suggested privately that the draft plan might fall short of principles behind a broad agreement to give long-term financing only to viable companies. But a later statement from press secretary Dana Perino sounded relatively upbeat about the rescue legislation, which congressional leaders hope to approve in the next few days.
"We've made a lot of progress in recent days to develop legislation to help automakers restructure and achieve long-term viability," she said. "We'll continue to work with members on both sides of the aisle to achieve legislation that protects the good faith investment by taxpayers."
Bush himself said it was "hard to tell" if a deal was imminent because definite conditions had to be met. "These are important companies, but on the other hand, we just don't want to put good money after bad," he said in an interview with ABC's "Nightline."
At the Capitol, Senate Majority Leader Harry Reid, D-Nev., said, "While we take no satisfaction in loaning taxpayer money to these companies, we know it must be done." He added, "This is no blank check or blind hope."
House Speaker Nancy Pelosi, D-Calif., said negotiations were continuing with the White House, and lawmakers were hoping to create an auto industry that could thrive on its own - an effort she said would require concessions from management, labor, creditors and others.
"We call this a barbershop. Everybody's getting a haircut," Pelosi said.
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