'Long-term viability' key to auto loans

WASHINGTON, Dec. 9 (UPI) -- The Bush administration is insisting "long-term viability" be part of a federal loan for U.S. automakers, White House spokeswoman Dana Perino said.

"There will be no long-term financing if they cannot prove long term viability," Perino told reporters Tuesday.

Perino said "good progress is being made" on hammering out details of the plan, which is widely reported to be a $15 billion loan using available funds from a $25 billion package approved by Congress originally stipulated as help for automakers to retool to increase fuel efficiency.

"We just want to make sure that all the 'i's' are dotted and 't's' are crossed before we say that we have a deal," she said, claiming, "I wouldn't read into anything if we don't get it all finalized today."

Perino would not comment on whether or not former Federal Reserve Chairman Paul Volcker would be appointed head of the committee -- the so-called "Car Czar" -- to oversee the automakers' use of the funds.

"We don't even have legislation yet, so we're not going to comment on any rumors," she said.