WASHINGTON — House Speaker Nancy Pelosi called for “emergency and limited financial assistance” for the battered auto industry Tuesday and urged the outgoing Bush administration to join lawmakers in reaching a quick compromise.
Four days after dismal financial reports from General Motors and Ford, Pelosi backed legislation to make the automakers eligible for help under the $700 billion bailout measure that cleared Congress in October.
In a written statement, the California Democrat said the aid was needed “in order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry.”
“Congress and the Bush administration must take immediate action,” she added.
Administration officials have concluded that the bailout bill that passed earlier does not permit loans to the auto industry, but lawmakers are expected to return to the Capitol for a brief post-election session beginning next week.
Senate Majority Leader Harry Reid, D-Nev., also supports help for the industry, and he issued a statement saying Democrats were “determined to pass legislation that will save the jobs of millions” as part of a post-election session.
“This will only get done if President Bush and Senate Republicans work with us in a bipartisan fashion, and I am confident they will do what is right for our economy,” he said.
Before adjourning for the elections, Congress passed legislation providing for $25 billion in government-backed loans to the automakers to prod them to retool their factories to make more efficient vehicles.
Since then, executives from GM, Ford and Chrysler LLC and officials in the United Autoworkers union have called for more than that to avert a possible collapse of one of the nation’s biggest industries, including a $25 billion loan to help keep the companies afloat and $25 billion more to help cover future health-care payments for about 780,000 retirees and their dependents.
GM and Ford reported last week that they had spent down their cash reserves by a combined $14.6 billion in the past three months. Ford said it would slash more than 2,000 white-collar jobs.
Pelosi said she had asked Rep. Barney Frank, D-Mass., to draft legislation.
