December 6th, 2008
09:24 AM ET
14 years ago

Deadlock over Detroit bailout may soon end

[cnn-photo-caption image= caption="News of November job losses "changed everything" for House Speaker Nancy Pelosi, an official said."] WASHINGTON (CNN) - Help may soon be on the way to the struggling U.S. auto industry after House Speaker Nancy Pelosi backed off her opposition to using funds from a fuel-efficiency research program for a bailout, two congressional officials said Friday.

The significant move from Pelosi signals that the deadlock over rescuing Detroit may be over.

Congressional Republicans and President Bush support the idea of tapping the $25 billion advanced technology fund. Two officials familiar with compromise talks told CNN that the working target is $15 billion to $17 billion in bridge loans, intended to fund the struggling Big Three automakers through March.

Watch Congress mulls auto bailout

However, one senior Democratic congressional source told CNN that House and Senate committee staff will meet over the weekend to write a bill to provide $20 billion to $25 billion in assistance to the U.S. auto companies.

This aide said the "mathematicians were working" at how to reprogram the money by reducing a subsidy to come up with a figure that would be available for loans, despite an earlier report that only $7.5 billion was available from the fund passed last year for fuel efficiency research.

This aide said the bill could be on the House floor as early as Tuesday, but thought it was more likely that the Senate would vote on the bill first.

Full story

Filed under: Auto Bailout • Congress
soundoff (52 Responses)
  1. Juan Grain

    The majority of Americans understand that the Big 3 WILL NOT restructure in a sustainable way without a pre-packaged bankruptcy. But Nancy Pelosi and Chris Dodd refuse to understand this. I am very familliar with "Lean Manufacturing & Six Sigma" and the US Dinasours scoffed at Deming back in the 70's and forced him to go to the Japanese. President Obama will have to reign Pelosi and the likes of her in, for she will be his thorn in the flesh to a successful term as president. Not to mention her dismisal of what the American people clearly say about a big three bail-out. If she doesn't get it together then she must go. NO BAIL OUT PRE BANK-O FOR BIG 3

    December 6, 2008 09:34 am at 9:34 am |
  2. Barbara

    "Aide Says", "Source Says" – HA – this isn't a news column, it's a gossip column.

    December 6, 2008 09:38 am at 9:38 am |
  3. the_jackal

    bail out, bail out, bail out that is all that I see on T.V now that the elections are over. My question is this,WHY?WHY? WHY. Were is the help for all the people who are being foreclosed on. We re so bombarded by BS and rehetoric that we walk around in a daze all the time. If I cannot pay for a kouse I lose it, If I cannot pay for food I go hungry, If I cannot buy clothes I wear rags, etc etc etc. SO all these companies that HAVE SQUANDERED AND WAISTED all the money they have earned should go bancrupt like so many others. WHY HAS SATURN not asked for help?????
    If the big 3 want to be viable again, we need to let them all go broke, restructure in 3 or 4 months come out of bankrupcy and reopen with NO UNIONS. People need to work until they are 65 no matter the time they have put into a job and Big companies need to quit bleeding the little guy.
    As far as cars from Europe and Japan, they are better built, have less down time, and run better than any AMERICAN built car.

    December 6, 2008 09:48 am at 9:48 am |
  4. Steven

    Of course the Democrats are going to push the loans to the Big 3. All Pelosi and Reid did a few weeks ago was put on a show. They have no intentions of letting their UAW folks down. I bet they come up with more than $17 billion. Can't let the UAW go down in flames! There would be hell to pay in the next election cycle and the Dems would pay dearly.

    December 6, 2008 09:51 am at 9:51 am |
  5. Lilarose in Bandon, Oregon

    Give the auto industry the money!

    Give whoever asks for it the money!

    What difference does it make. As long as they are building the cars going to nowhere, cars people won't buy, cars that are no longer practical for many reasons, they won't be sold.

    The United States needs to BRING OUR JOBS BACK FROM OVERSEAS.

    This can be done by not doing business with ANY company that has representatives overseas (like when you call their customer service) or that manufactures overseas.

    CNN–please give us an extensive list of these companies.

    December 6, 2008 10:12 am at 10:12 am |
  6. Cricket

    This bail out is something that few taxpayers are supporting, but the alternative of losing so many more jobs is even more frightening. After a loss of 533,000 jobs in the month of Nov., how many more can we afford to have laid off?? As citizens who are blessed to have jobs and are still solvent, we are going to have to come up with a means of helping our fellow Americans who are suffering. With the condition of our economy we can't place the entire burden on our government-no matter whose fault it is that we are where we are. I'm 63, and I grew up believing charity begins at home, and now seems the time to prove we are willing to help.

    December 6, 2008 10:15 am at 10:15 am |
  7. Godluvr

    Stop the drama and lend them the money! This money is more visible and more tangible than the 800B 'given' in the Bailout, with no pre-conditions. Timing has been an enemy to the automakers, because Wallstreet/AIG got there first. But I hope and pray, that Congress has learned some lessons from the huge debacle in November. They must establish a concise paper trail, and accountability of all monies received. They also need a committment from the automakers to repay, by a time frame etched on paper (contract).

    December 6, 2008 10:18 am at 10:18 am |
  8. beckster


    December 6, 2008 10:27 am at 10:27 am |
  9. Scott Tucson

    This is great stuff, the same democats who are responsible for the freddy-mac/fannie-mae fiasco are going to fix the auto industry. It will be the typical democratic atitude of throwing away good money into a failing company/program.

    December 6, 2008 10:34 am at 10:34 am |
  10. Ray Fisher

    Fuel cells are the key. By insisting that the automakers build fuel cell automobiles and providing loans for the auto companies AND a hydrogen fueling infrastructure, America can take a very bold step to solve our economic AND environmental challenges simultaneously. Having healthy industries while greenhouse gases are choking our environment and economy is folly and counter-productive yet by reinventing the entire industry in one master stroke we can hasten our conversion off an oil based economy, repair our environment, hasten new fuel cell industries, create new technologies and improve our world before its too late. Our economic meltdown is very bad but it will be worse if we fail to take advantage of the opportunity to make real change.

    December 6, 2008 10:35 am at 10:35 am |
  11. Jerry

    My wife bought some ugly sofa and I want a bail out to Nancy. What fool would believe these company leaders are going to work for a dollar , wake up and stop the bail out insanity. Also I heard that Chris Dodd is looking for a car with great terms.

    December 6, 2008 10:51 am at 10:51 am |
  12. Buckeye

    This is a message from ground zero of the economic terrorism that hit the auto industry, Lordstown Ohio: HELP!

    December 6, 2008 10:56 am at 10:56 am |
  13. chris ludlow

    funny. an article as important as this, and i'm the first post. blurb about palin has 506. another example of how the left loves to hate. it's like hating the president has somehow gotten 'old.' and palin is their next victim.

    December 6, 2008 10:59 am at 10:59 am |
  14. katiec

    We have had enough of our politicians postering, finger pointing and posing in front of the TV cameras, asking the same questions over and over. It is time to make some responsible decisions and get the economy moving.
    Does our government follow the same stipulations they are demanding from the auto industry? Hmmmm.

    December 6, 2008 11:02 am at 11:02 am |
  15. hooverguide

    The home foreclosure issue remains unsolved – our neighbors, friends and family are losing their homes with no end in sight.
    It is hard to imagine that the brightest minds of our country cannot get back to the fundamental foundation of this entire financial meltdown - the housing industry. People are being forced out of their homes or now, walking away. Neighborhoods are devastated and families are seeking shelter in cars they can no longer pay for either. How much would it have cost to bring the loans down to reasonable levels and let everyone stay home? Does anyone know? Would it be more than the $135Billion to AIG (who now wants even more), the $700Billion to banks, the $34Billion to car companies - how much to prop up the ailing manufacturing companies, the cellular companies - how many people will be out on the streets with no homes, no jobs, and no hope? We missed the opportunity to stem the tide that will now drown main street.

    December 6, 2008 11:13 am at 11:13 am |
  16. Armando

    Ugh. I wish our elected officials actually understood economics. For everyone who doesn't you can get a general idea by reading Henry Hazlitt's Economics in One Lesson. Economics is fairly common sense. Also I would suggest checking out the youtube video titled "Peter Schiff was right".

    December 6, 2008 11:20 am at 11:20 am |
  17. Armando

    Ugh. I wish our elected officials actually understood economics. For everyone who doesn't you can get a general idea by reading Henry Hazlitt's Economics in One Lesson. Economics is fairly common sense. Also I would suggest checking out the youtube video titled "Peter Schiff was right".

    December 6, 2008 11:22 am at 11:22 am |
  18. J.C.

    Let's pretend that we are the CEOs of the big three for a moment. Why haven't we made any efforts in energy-efficient cars all these years? 1) We can't do anything that may decrease the size of our companies, because the larger we are, the easier it is to get a bailout rescue; Fortunately, our Unions agree with us; 2) New Technologies are beyond their comprehension; 3) We are thrilled that the White House and Congress will now move that 25 billions for technology and more to pay our bills; We will be out of here when we get our options and bonus. That's their problem.

    We should give the 25 billions to MIT and DOE national labs to do research on energy efficient cars. Obviously, the big three are not interested in new technology at all. They just kept on asking for more to do nothing about it. Why do we want to keep the same CEOs on the job? Why can't we fire them and hire Toyota to help us straighten this out? It's not the culture difference that makes us fail. It's the corporate mentality that fails them and D.C. continues babysit them to failure. If the bailout is given, the taxpayers must own a big chunk of the companies and vote for its management in all stockholders' meetings. It's easier to waste others' money. We can't depend on anybody else to watch out for our money. We also need to get rid of at least one automaker. Which one should go in your opinion?

    December 6, 2008 11:25 am at 11:25 am |
  19. Keith

    Re: Auto Bailout

    For years the Japanese carmakers made sub-standard cars but they relied on an American publication called Consumers Reports to find out how they could improve their cars. Do you see any of the foreign car makers asking for multi-billion bailout loans? Why is that the American car makers cannot rely on an American publication to find out what Americans (and Canadians) want in a car – is it arrogance, indifference or just plain stupidity. Why not get Consumers Reports involved in the discussions with the automakers as to what they need to do to sell more cars - certainly wouldn't cost a billion dollars.

    Keith in Toronto

    December 6, 2008 11:31 am at 11:31 am |
  20. Gaylon Barrow

    This is the first act OBAMA must do. Is get ride Of PELOSI> This woman is worthless and has been the main reason a Democrat Congress. Has been a not action Democrat led Congress.

    December 6, 2008 11:38 am at 11:38 am |
  21. Flash Gorden /-\

    Hey, my business is failing. Can I get $100,000 or so to help my employees? P-L-E-A-Z-E!? I'm just one of the little folk...

    December 6, 2008 11:38 am at 11:38 am |
  22. Robert Rice

    Accountability is what this issue is about. Tell us where the money is going to go. What percentage will be spent for what action? That is why President – Elect Obama won this campaign, he gave us specifics about his plan for the US, and not " I know how to take care of this problem ". The American people want to know how the car makers are going to efficiently spend the American dollar. On that note I also have an idea about the Economic Stimulus Package for President – Elect Obama – Forget about a stimulus package that gives free money to the American public. From what I've heard most people are going to put the money under their mattress. How will that help the economy ? How about a stimulus rebate to encourage spending. I've spent time thinking about this issue but don't know where to summit my ideas. Any suggestions would be appreciated.

    December 6, 2008 11:42 am at 11:42 am |
  23. the kid

    let them sink. also put blame for the bail out on Peloski she should have her walking papers.

    December 6, 2008 11:44 am at 11:44 am |
  24. J.C.

    Shut down the plants and send the willing auto workers back to school with government vouchers.

    If the Congress wants to help the workers, help them directly, definitely not through their employers. It's been done and failed badly before. Why repeat the same mistake?

    December 6, 2008 11:52 am at 11:52 am |
  25. Jaye

    I personally don't care about the Big 3, but I do care for the workers and the retirees.
    What will happen to the retirees retirement and benefits if any of the car companys go bankrupt?

    December 6, 2008 11:55 am at 11:55 am |
1 2 3