House passes auto bailout bill

WASHINGTON, Dec. 10 (UPI) -- The U.S. House OK'd a plan Wednesday night to rebuild the nation's domestic automobile industry, but Senate Republicans might run it in a ditch.

"There were a lot of misgivings in the (Republican) caucus," the San Francisco Chronicle quoted Sen. Richard Shelby, R-Ala., as saying following a private meeting with White House Chief of Staff Josh Bolten and Vice President Dick Cheney.

Another opponent of the measure, Sen. Christopher "Kit" Bond, R-Mo., was more blunt.

"It's not going to pass right now," Bond said.

The House effort to funnel $14 billion to General Motors and Chrysler, both desperate for cash, was passed on a 237-170, The Washington Post reported.

In addition to giving GM and Chrysler the cash they say they need to survive through March 31, the measure also sets terms for Ford Motor Co., which has said it needs a $9 billion credit line, the Detroit Free Press reported.

GM and Chrysler would have to grant the government an equity stake stake in either company, as well as restrict executive pay and end corporate jet travel, the Free Press said.

The bailout legislation would require Bush to name an "auto czar" who would monitor the automakers' progress in their return to private, self-sustaining status, CNN reported

If the companies do not meet financial progress standards, the auto czar would call in the loans. The bill also bars the companies from further federal assistance should they fail to make progress.

But some GOP lawmakers say rather than bailing out the Big Three, they preferred to let them reorganize themselves in bankruptcy proceedings.