WASHINGTON — Beleaguered U.S. automakers are seeking federal help beyond the money available for them as part of a financial- industry bailout and a loan package to fund more fuel-efficient cars, the White House said Tuesday.
White House spokeswoman Dana Perino said the auto industry has talked to the Bush administration about funding on a much broader scale than the two programs approved by Congress earlier this fall.
“No doubt that the automakers are big, important companies, important to a lot of families and important to a lot of regions in this country,” Perino said. “We are capable of competing at a level where these companies can succeed; they might just need a little help. And that’s what Congress asked us to help provide them.”
General Motors, which is in talks about acquiring Chrysler, is pursuing $5 billion to $10 billion in government aid, said an industry official who declined to be identified because the discussions were private. GM officials declined to comment.
GM has approached members of Congress and the administration about a number of ways that government funding could be used to help the company, including playing a part in a Chrysler deal, said a person briefed on the negotiations. The person asked not to be identified because no deal has been completed.
The requests have come as GM and Chrysler are burning up cash because of an auto-industry sales slump that resulted from the U.S. economic downturn.
Chrysler employs about 49,000 in the U.S. and has about 125,000 pensioners. GM has 177,000 U.S. workers and about 500,000 people receiving pensions.
The Center for Automotive Research in Ann Arbor, Mich., estimates that for each auto-manufacturing position, there are 7.5 jobs with parts makers and other companies, meaning the industry accounts for more than a million jobs.
Any role by the government in a GM-Chrysler deal would face scrutiny from Congress because it would likely lead to significant job losses as the companies combine operations.
The White House is focused on two major options to aid the industry, Perino said. They include the $25 billion in government loans approved by Congress for fuel-saving technology and money to free up credit through the $700 billion Wall Street bailout.
