$15 billion auto bailout goes to White House

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By David R. Sands

Congressional Democrats on Monday delivered to the White House an emergency $15 billion taxpayer bailout of Detroit's beleaguered Big Three automakers, designed to keep the companies in business until the Obama administration can tackle the industry's long-term woes.

But there were signs that the political wrangling over Detroit's future was not over, with the White House voicing concerns about parts of the congressional bailout blueprint, which calls for a "car czar" to oversee efforts to revive the industry.

The White House was less than thrilled with the congressional draft over its lack of focus on long-term restructuring for the companies, even though Democrats bowed to the administration's opposition to tapping Wall Street bailout money.

According to a copy of the draft bill obtained by The Washington Times, the bill would provide up to $15 billion in loans to the Big Three, using an existing Department of Energy loan program designed to promote more fuel-efficient cars.

House Financial Services Committee Chairman Barney Frank, Massachusetts Democrat, noted that nothing in the emergency package blocked President-elect Barack Obama or the incoming Congress from approving more funds for the Big Three. The president-elect has expressed qualified support for an automaker rescue package, and many congressional Democrats expect him to dip into the remaining uncommitted $360 billion from the Wall Street bailout kitty to help the Detroit companies.

House Speaker Nancy Pelosi, California Democrat, said the hastily written bill was meant to tide over General Motors Corp., Ford Motor Co. and Chrysler LLC until the end of March, with corporate executives, unions, retirees, shareholders and creditors all on the line to take painful steps to ensure the companies' long-term viability.

"Everybody has to take a haircut," she said, with the government reserving the right to reclaim its money early if the carmakers fail to show progress.

"There's not going to be an endless flow of money to this industry," she told reporters.

With the lame-duck Congress hoping to pass a bill for President Bush's signature by the end of the week, Mr. Frank said an intense "five-way" negotiation was under way with the White House and the Democratic and Republican caucuses in both houses of Congress.

Republicans on Capitol Hill were showing signs that they were resistant to the prospect of yet another taxpayer bailout.