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WASHINGTON: Democratic leaders in the Senate and House of Representatives on Thursday said there was so far no plan to rescue the crisis-hit "Big Three" auto makers that could pass through Congress.
Senate Majority leader Harry Reid said it was a "sad reality" that despite a bipartisan deal by four senators from states related to the industry, there was not yet sufficient support for a rescue plan to pass.
He said the chiefs of big auto firms would have another chance to come up with suggestions for a rescue package, likely to involve significant restructuring, and Congress could reconsider whether to back it in December.
"We do not have the votes," Reid said. "We want them to get their act together, we want to help.
"Yes, we are kicking the can down the road, because that will give us the opportunity to do something positive."
"The executives of the auto companies have not been able to convince the Congress or the American people that this government bailout will be its last," Reid told reporters.
"In light of the importance of this issue to all of us, we have decided that the best way to proceed is to give the auto companies another opportunity to make their case."
Reid said the auto industry chiefs must come up with a new plan by the week of December 2, and the Congress could hold another lame duck session to mull an emergency cash injection in the following week.
House Democratic speaker Nancy Pelosi said that the chiefs of top automakers who came to plead with Congress for bailout funds this week, had so far shown no clarity on how they wanted to restructure the industry for the future.
"Until we can see a plan where the auto industry is held accountable and a plan for viability on how they go into the future until we see the plan, until they show the plan, we cannot show them the money," Pelosi said.
Earlier a bipartisan group of senators from Michigan, Missouri and Ohio said they had reached a deal to support the industry.
The news of a possible deal for the struggling Big Three automakers jolted Wall Street out of a heavy sell-off, sending the Dow Jones Industrial up 36 points (0.45 percent) to 8,033.28 and also had the Nasdaq rebounding.
Democrats have demanded that the White House and the Treasury carve out 25 billion dollars in funding from a 700 billion dollar finance industry bailout to support the automakers.
But the White House has refused and called on the Senate to allow the industry to use 25 billion dollars in already existing Energy Department loans.
The deal came as hopes of a bailout for the industry before President-elect Barack Obama takes office next January were fading.
On Wednesday night, Harry Reid said nothing would happen unless the White House budged.
"The Treasury already has the authority and resources to protect thousands of Americans who work in our nation's struggling auto industry," he said in a statement.
"If the Bush administration has any interest in saving Detroit, it has the power to do so."
White House spokeswoman Dana Perino accused Democrats of giving up the effort.
"It looks like Senator Reid just wants to pick up his ball and go home for the next two weeks - two months for vacation," she said.
"If that is the case, then one can only deduct that the Democrats don't believe that the auto industry really needs help, and really needs help now. We disagree."
Top Executives from General Motors, Ford and Chrysler this week begged Congress for the multi-billion-dollar loans and warned the industry faces a "catastrophic collapse" if the lawmakers didn't fund them. - AFP/de
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