Congressional Democrats and the White House on Tuesday are expected to finalize a $15 billion emergency loan package to help save millions of jobs connected to the nation's troubled auto industry.
Talks to prevent the collapse of General Motors Corp. and Chrysler LLC have intensified in recent days, with the broad outline of a plan emerging Monday. GM, Chrysler and Ford Motor Co. directly employ about 350,000 people, and millions of other workers depend on the industry.
Under the deal taking shape, GM and Chrysler would get emergency loans on Dec. 15. Then an overseer — a kind of "car czar" — would write guidelines, due on the first of the year, for restructuring the Big Three automakers. If the car companies haven't taken enough steps to reinvent themselves by Feb. 15, the overseer could recall the money.
The White House was seeking even tougher measures that would have allowed the car czar to force automakers into bankruptcy if they don't cut labor costs, restructure debt and downsize.
Congressional officials said Kenneth Feinberg, the lawyer who oversaw the federal Sept. 11 victims' compensation fund, is under consideration for the car czar post.
The Bush administration has maintained that any plan must include best efforts to guarantee that taxpayer dollars are paid back and that the automakers are able to reorganize and compete.
Deputy White House press secretary Tony Fratto said Tuesday, "We made progress and hope to continue making progress. We want to move quickly, but it's important that we get the policy right."
As the head of the United Auto Workers voiced fresh confidence that an agreement will be reached, House Speaker Nancy Pelosi (D-CA) told NBC's Today show that "it's very important" for the Big Three to be forced to change and not be "left to their own devices."
Pelosi said she thinks taxpayers should consider the plan "a second chance" for the industry — not a bailout.
UAW President Ron Gettelfinger, appearing on CBS's The Early Show, would not say whether his union would demand a seat on GM's board of directors in exchange for contract concessions. But he did say that "if we're going [to] be asked to give up more, and it appears that we are, then we should have an equity stake in the company."
Robert Lutz, GM's vice president of global product development, also appearing on CBS, said his company is ready to accept a federally appointed czar.
Despite optimism on both sides that Congress and the White House could reach a quick deal, it is still unlikely to be an easy sell on Capitol Hill.
"While we take no satisfaction in loaning taxpayer money to these companies, we know it must be done," Senate Majority Leader Harry Reid (D-NV) said. "This is no blank check or blind hope."
From wire reports
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