Transcripts

Auto Bailout... We Aren't There Yet

SUZANNE PRATT: The Federal bailout of the U.S. auto industry could be in jeopardy, despite a deal between congressional Democrats and the White House. The House is expected to vote on the $14 billion plan later tonight, but Republican law makers are threatening to block it. The latest version of the bill calls for a government appointed car czar to monitor how the money is spent and whether the auto makers are doing enough to cut costs. But as Stephanie Dhue reports, some Republicans are now calling for a different plan.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Even as the House debated a $14 billion loan package, Republicans were offering alternatives. House Republican leader John Boehner wants a prepackaged reorganization with the government providing some insurance against a default, but no cash up front.

REP. JOHN BOEHNER, HOUSE MINORITY LEADER: We really do believe that these auto makers need help, but they need to help themselves, to the extent that they have hard deadlines. I think they can attract private capital.

DHUE: But supporters of the auto package, like Michigan Congressman Sander Levin, say that would be a failure for Detroit auto makers.

REP. SANDER LEVIN (D) MICHIGAN: And essentially what is being proposed by those who oppose this is paralysis. We need action to help bridge, they have started, they have a long ways to go. It is up to us to provide this bridge to the future.

DHUE: In the Senate, a handful of Republicans dug in their heels against the auto package. Nevada Republican John Ensign says the auto industry has a business not a political problem.

SENATOR JOHN ENSIGN, (R) NEVADA: When GM, Ford, Chrysler, their management teams have not been able to run their companies obviously very well. How does anybody expect some car czar or some politician to be able to make the decisions that are right from a business standpoint for these car companies?

DHUE: General Motors board member Kent Kressa says the board is continuing to monitor the company's cash position and restructuring plans. Without a government loan, the company has said it could run out of money by the end of the year. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.