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Begging auto execs not finding much sympathy on Capitol Hill

Many lawmakers resistant to Detroit three bailout

Justin Hyde • Gannett News Service • November 20, 2008 • From Lansing State Journal

WASHINGTON - Detroit automakers struggled for traction Wednesday on their second day of trying to convince Congress that they need $25 billion in loans to remain in business.

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Democrats, Republicans and the White House sparred over whether to compromise on a source of money for the industry.

"We have run right out of capital," said General Motors Corp. Chairman Rick Wagoner. "Without an injection of capital, some portion if not all of the domestic industry will not survive."

The hearings in the House focusing on the industry's plight came as Republican senators proposed a compromise plan to draw $25 billion from already authorized federal loans to retool auto plants, money that Democrats want to keep intact. House and Senate Democrats favor using $25 billion from the $700 billion financial industry bailout.

Senate Republicans said their proposed bill would be the only one President George W. Bush would sign.

White House spokeswoman Dana Perino urged Senate Majority Leader Harry Reid, D-Nev., to let it reach the floor for a vote.

"If the Senate leaves without Sen. Reid even allowing a vote on this amendment, then the Congress will bear responsibility for anything that happens in the next couple of months during their long vacation," Perino said.

Sen. Carl Levin, D-Detroit, said a compromise was essential, given U.S. automakers' plight.

Two of the three automakers are running low enough on cash to raise serious questions as to whether they can survive until President-elect Barack Obama is sworn in on Jan. 20.

"Are we going to permit a difference over the source of funds for these loans to destroy an opportunity to help an industry so essential to this economy?" Levin said.

The auto industry may directly or indirectly support up to 3 million jobs in the U.S.

The auto executives said the loans would be used for developing new vehicles, retooling plants and paying employees and suppliers.

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