Auto Bailout: Not Monday: White House Mulls Option

The White House tossed out no lifeline for the teetering auto industry Sunday, although  President Bush reiterated that he was considering using money from the $700 billion financial bailout fund to provide loans to the carmakers.

“An abrupt bankruptcy for autos could be devastating for the economy,” Mr. Bush told reporters Monday aboard Air Force One during an unannounced trip to Iraq and Afghanistan. “We’re now in the process of working with the stakeholders on a way forward. We’re not quite ready to announce that yet.”

In a photo provided by the Ford Motor Co., the final Ford Expedition ...
In a photo provided by the Ford Motor Co., the final Ford Expedition is driven off the assembly line as production ends at Michigan Truck Plant in Wayne, Mich., Wednesday, Nov. 26, 2008. The move signals the beginning of the transformation of the auto plant to be retooled as a car plant to begin producing small, fuel-efficient vehicles in 2010. (AP Photo/Ford Motor Co., Sam VarnHagen)

Mr. Bush wouldn’t give a precise timetable but said, “This will not be a long process because of the economic fragility of the autos.”

White House officials said they did not expect to make an announcement Monday. The administration is considering ways to provide emergency aid to General Motors Corp. and Chrysler LLC, which have said they could run out of cash within weeks without federal aid.

Sen. Bob Corker, Tennessee Republican, who blocked legislation that would have provided $14 billion in loans to the automakers, said he had spoken with the White House early Sunday. “I don’t think they yet know what they’re going to do,” he said. Ron Gettelfinger, the president of the United Auto Workers, said the union had not held discussions with the White House.

CBS VIA ASSOCIATED PRESS Sen. Bob Corker spoke with White House officials and said, "I don't think they yet know what they're going to do."

Sen. Bob Corker

Associated Press

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http://www.washingtontimes.com/news/2008/dec/
15/bush-takes-no-action-to-salvage-auto-industry/

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