Washington (WWJ) -- The Senate's top Democrat has called off a planned vote this week on a $25 billion auto industry bailout.
Senate Majority Leader Harry Reid said that he wanted to figure out some way to help Detroit's struggling Big Three but that efforts to do so had stalled.
A bipartisan group from auto industry states is working to cut a deal on a scaled-down aid package. If agreement can be reached, Reid said the Senate could still vote on it as part of a measure to extend jobless benefits.
Detroit's Big Three auto executives returned to Capitol Hill Wednesday to ask skeptical lawmakers for a $25 billion lifeline to keep the crippled industry from collapsing.
The heads of General Motors, Ford and Chrysler appeared before the House Financial Services Committee, making the same plea they made Tuesday to the Senate Banking Committee. But they face stiff opposition from Republicans on the Hill, as well as the White House.
Earlier Wednesday Reid said ``If we can't do it here legislatively, I would hope that the secretary of Treasury would listen loud and clear because they could take this into their own hands and do what I think is appropriate from their perspective.''
Responded White House press secretary Dana Perino: ``There's no appetite for that.'' She said it was up to Congress to act.
WWJ Newsradio 950 spoke live with Michigan U.S. Representative Thad McCotter who said supports the Big Three and their plea. Listen:
The Michigan Delegation testified at the hearing Wednesday afternoon. Listen:
WWJ Auto Analyst John McElroy also weighed in on the subject on Wednesday. How would he grade the CEOs performance on Capital Hills? Listen:
The difficulties of striking a deal on the package before a new president and a new Congress with expanded Democratic majorities take office appeared to be too great to overcome. The deadlock persisted even as the heads of General Motors, Ford and Chrysler returned for a second day to plead for relief and as their congressional backers urged colleagues not to punish them for past mistakes.
General Motors Corp. CEO Rick Wagoner told the House Financial Services Committee that collapse of the U.S. auto industry could lead to a loss of 3 million jobs within the first year and ripple throughout communities around the nation.
In sometimes contentious testimony, Wagoner was pressed on when GM would run out of money if the loans weren't extended.
He said he couldn't say precisely, but that the company now was burning through ``$5 billion each month.''
Still, with the $25 billion emergency package, ``We think we have a good shot to make it through this,'' Wagoner said. He said he anticipated that, if the package is approved, GM would qualify for about $10 billion to $12 billion of the money.
President George W. Bush and Republicans in Congress have been reluctant to use the Treasury Department's $700 billion financial bailout program to finance the loans. The White House wants Congress to draw the $25 billion from an Energy Department program established to encourage production of fuel-efficient cars.
Perino said Wednesday the administration supports legislation to authorize just that, but will not go along with the proposal by Democratic leaders that an additional $25 billion be taken from the government's existing $700 billion Wall Street bailout fund.
``The purpose of the $700 billion was clearly intended for financial institutions, and we wanted to keep that whole,'' Perino said.
If Congress quits without taking any action, ``then the Congress will bear responsibility for anything that happens in the next couple of months during their long vacation,'' Perino said.
Congressional Republicans battled uphill to try to pick up Democratic support for the White House plan to allow auto companies to draw emergency loans from the $25 billion fuel-efficiency fund.
Democratic leaders have rejected such a course, and environmentalists don't want that money used for anything other than its intended purpose. But the GOP approach, being crafted by Sens. Kit Bond, R-Mo., and George Voinovich, R-Ohio, would require the automakers to plow back into the fund repaid loans, interest and income from equity stakes.
The proposal, outlined in a position paper obtained by The Associated Press, is intended to satisfy Democrats concerned about raiding the fuel-efficiency loan program. Since auto makers would not be tapping those funds immediately, supporters argue, the money would be restored by the time they were needed.
During the House hearing Wednesday, Rep. Brad Sherman, D-Calif., asked the three auto chiefs seated at the witness table before him to raise their hands if they had come to Washington on commercial airliners. No hands went up. Then he asked if any planned to sell their corporate jets. Again, no hands went up.
Sherman and Rep. Gary Ackerman, D-N.Y., told the auto executives they were having a hard time justifying to their constituents bailing out companies whose chiefs fly around in expensive private jets.
Ackerman said there was ``a delicious irony in seeing private jets flying into Washington D.C. and people coming off them with tin cups in their hands.''
(Photo Caption: Auto executives, from left, Ron Gettelfinger, president of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America; General Motors Chief Executive Officer Richard Wagoner; Chrysler Chief Executive Officer Robert Nardelli; Ford Chief Executive Officer Alan Mulally, listen to testimony on Capitol Hill in Washington, Nov. 19, 2008, during a House Financial Services Committee hearing on the automotive industry bailout. AP Photo/Evan Vucci)
Education Minute 01/07
WWJ's Pat Vitale gives education tips beyond the classroom. A joint production of Eastern Michigan University-Education First! and WWJ.
GreatStuff 01/07
WWJ's Roberta Jasina highlights GreatStuff to do in Southeast Michigan.
Michigan School Grades 1/7
Don Watruba, Director of legislative affairs for the Michigan Association of School Boards is interviewed regarding the so-so rankings of Michigan Schools in Education Week Magazine.
UAW Talks 1/7
WWJ auto analyst John McElroy gives his opinion on the upcoming United Auto Workers concession talks coming up with GM and Chrysler.
WWJ Newsradio 950 is Detroit's only all-news radio station and is the leader in Detroit radio news. Listen online to WWJ-AM 950 for live, local Detroit news, up-to-the-minute Detroit traffic, Detroit sports, Detroit business and Detroit community information. WWJ Newsradio 950 is an award winning radio station and you can listen online and podcast on demand Detroit news, Detroit Construction Alerts, Detroit School Closings, Winter Survival Guide and learn more about our Business Breakfasts. www.wwj.com.
