Bill on Aid for Detroit Automakers Near; Congress Could Vote on Tuesday

Bill on Aid for Detroit Automakers Near; Congress Could Vote on Tuesday

By Bill Visnic

As the numbers on the U.S. economy worsen, resistance to federal assistance for the struggling Detroit Three automakers dissipates, with reports from Washington, D.C., saying Congress could vote on a hastily crafted bailout package as early as Tuesday.

White House spokesperson Dana Perito told reporters today it appears the Bush administration and congressional leaders, squabbling mostly about from where "bridge loan" funds would be appropriated, have to come to agreement, although Congressional Democrats need to construct a bill.

"It sounds like we have agreement on those basic principles that would be required for a bill that the president could sign," Perito was quoted as saying.

House Financial Services Committee Chairman Barney Frank (D-MA), told television interviewers a deal can be reached Monday for funds to keep the Big Three operating through March.

The amount is likely to be around $17 billion -- more than the $15 billion figure widely disseminated late last week, but less than the up to $34 billion the automakers' Chief Executives had requested. It is believed, however, the bill presented to Congress will be understood to be providing for "emergency" funding until President-elect Barack Obama's administration is in place and a more lasting strategy can be crafted.

Less clear is how detailed "oversight" provisions might dominate the hastily organized bill. Many members of Congress, including those presiding over the two hearings in which the CEOs from Chrysler LLC, Ford Motor Co. and General Motors Corp. testified, have suggested they are mistrustful of existing auto-company management's commitment to genuine restructuring of their operations, the role of the United Auto Workers union in any wholesale industry makeover and whether requested funds actually will be sufficient to carry the automakers through a U.S. recession that is expected to last at least through all of 2009.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.