White House Plays It Cool On Auto Bailout

Bush Administration Won't Be "Rushed Into" Deal For Distressed Automakers

(CBS/AP)  The White House sought Tuesday to play down prospects for an imminent bailout for distressed U.S. automakers and suggested any deal requiring taxpayer money will require major concessions by the parties involved.

"We are not going to be rushed into it," presidential press secretary Dana Perino declared.

Only a day earlier, President George W. Bush suggested that a bailout package would come sooner rather than later. "An abrupt bankruptcy for autos could be devastating for the economy," Mr. Bush said on Monday. "This will not be a long process because of the economic fragility of the autos."

The White House is reportedly considering tapping the bailout fund used to pump money into financial institutions. It had previously insisted that fund was off-limits for troubled automakers, but the administration has now concluded an industry bankruptcy would be too damaging, reports CBS News correspondent Peter Maer.

Perino said the administration was still working on details of the package and wants to hear more from all those involved, including key lawmakers and those in the industry. She said concessions need to be made in exchange for a rescue package that reportedly could reach $15 billion for General Motors Corp. and Chrysler LLC.

"If we're going to use taxpayer financing to assist the automakers, all stakeholders are going to have to come to the table and be willing to show that they are capable and willing to make really tough decisions about the way forward," Perino said.

Perino did not specify what concessions need to be made and by whom, but said, "I don't think that there's any possible way that this president would agree to allow taxpayer financing to go toward firms that are not willing to make tough decisions to become viable and competitive in the future. I just do not think that will happen."

GM and Chrysler have said they will run out of cash within weeks if they don't get help. Ford Motor Co. has said it has enough cash to survive 2009.

The administration indicated it would extend a helping hand to the domestic automakers after a $14 billion aid package to the auto industry failed in Congress last week in part because of a contention that the industry was largely to blame for its own problems.

Perino said at her daily news briefing that "I don't know of an imminent announcement coming from us," suggesting expectations for a quick decision were premature. "We are taking the time to try to do it right and weighing all of the options," she said.

"We will do it if we decide to do it, and we'll do it in the time that we think that is right," Perino added.

Asked about her use of the word "if," when Mr. Bush had appeared to signal that some form of U.S. aid would be forthcoming, Perino said: "Because I don't have an announcement for you."

She said she didn't want to appear to signal that help was on its way "if at the end of the day, we don't do something."

Mr. Bush himself refused to answer shouted questions about the timing of any auto deal during an unrelated event in the Oval Office earlier Tuesday morning.

Perino said the prime goal remained to "prevent a disorderly bankruptcy."

Sen. Carl Levin, D-Mich., has said he expects GM to get $8 billion and Chrysler $7 billion from the Bush administration. He said the Treasury secretary likely would be tapped as a "car czar" to oversee restructuring of the companies.

Vice President Dick Cheney, in an interview with conservative talk show host Rush Limbaugh, cautioned that "if the automobile industry goes belly up now, there's a deep concern that that would be a major shock to the system."

The administration is weighing several options. They include using money from the $700 billion financial bailout fund to provide loans to the carmakers or using money from the fund as collateral for emergency loans the automakers could get from the Federal Reserve.

House Speaker Nancy Pelosi, D-Calif., said the bailout funds were "the only recourse that they have" because of the failure to pass legislation in Congress. She said "something will have to happen imminently" but said requirements for restructuring should be attached to the funds.

"Otherwise, we're just giving life support, rather than a lifeline for viability into the future," Pelosi said.

The White House is keeping President-elect Barack Obama and his advisers informed of the discussions. If administration officials choose not to provide the money now, the Obama team could wait for the new Congress, which will have stronger Democratic majorities. But the delay could risk bankruptcy filings by GM and Chrysler.

[fredsauto]

I wish the news networks would tell it like it is!
GM and Chrysler need a loan!
Ford is doing well but would like a cushion set aside
in case of future problems!
IT IS NOT- BIG 3 BAILOUT!! THAT IS A FALSE STATEMENT!!

[jsd330]

aggiekat2004 so you have a masters in business and a couple of other degrees. So whats the problem finding a job. If you don''t know I''ll tell you, the job market is tight right now and the market is flooded with people with business degree,s. Your career choice wasn''t very bright. I went through a 4 year apprenticeship and make a heck of a lot more then most college grads, and in 35 years I have never been laid off. That was my career choice you made yours. So don''t cry about what somebody gets paid or what their benifits are.
You said you got severence pay isn''t that about the same as the auto workers getting 95%? sub pay + state unemployment = 95%.

[aggiekat2004]

I have an excellent work ethic...that''s why I have NO RESPECT FOR THE UAW AND AN ENTITLEMENT ATTITUDE HELD BY PEOPLE ASSOCIATED WITH THE UAW.

[aggiekat2004]

Nissan was actually founded in 1934.

[stjohn51]

F-OFF. I''''ve been out working for over 20 years now, and have done well.

Sounds like you''''ve NEVER been a student. Oh, or is your third grade diploma in a frame over your fireplace??


Posted by aggiekat2004 at 01:35 PM : Dec 17, 2008

Big education whoopee you''re still a punk with a lousy work ethic

As I said you''re a mess in progress


Good day

[aggiekat2004]

And Datsun/Nissan came into being in 1926.

[stjohn51]

Posted by aggiekat2004 at 01:34 PM : Dec 17, 2008

My final conclusion you''re a mess in progress

Now get off your butt and look for work and get rid of that snide attitude, this world owes you nothing; you now have an excellent education but you might have to settle for a job that doesn''t meet your skills at the moment.


Good luck

Have to go for now

[aggiekat2004]

Oh, and BTW...Toyota created its first passenger car in 1937.

So the argument about the US automakers being older? Not by much.

[aggiekat2004]

Big difference between the class rooms and real world real time communication skills

Maybe you''''re a good student that can''''t take it to the next level

Posted by stjohn51 at 01:28 PM : Dec 17, 2008
-----------
F-OFF. I''ve been out working for over 20 years now, and have done well.

Sounds like you''ve NEVER been a student. Oh, or is your third grade diploma in a frame over your fireplace??

[stjohn51]

or collect exorbitant retirement and benefits that I don''''t even have.



Posted by aggiekat2004 at 01:12 PM : Dec 17, 2008


You''ll have to work longer than five years and reach retirement age oh say around 65 before that argument will fly