Pelosi, Reid and Emanuel Push for Carmaker Bailout

Cadillac assembly line replica at the Detroit Historical Museum

Over the weekend, Democratic leaders in the House and Senate urged the
Bush administration to extend financial aid intended for Wall Street to
struggling domestic carmakers, a move that could have the support of
President-elect Obama.

The Times reports
that on Saturday, House Speaker Nancy Pelosi and Senate Majority Leader
Harry Reid co-signed a letter to Treasury Secretary Henry Paulson
asking that part of the $700 billion bailout package be directed toward
Detroit. “A healthy automobile manufacturing sector is essential to the
restoration of financial market stability, the overall health of our
economy and the livelihood of the automobile sector’s workforce,” they
wrote.

The
letter was issued following a Thursday meeting between Congressional
leaders and representatives of Ford, Chrysler and General Motors, as
Big Three sales continue to plunge. On Friday, GM announced that it
could begin running out of cash in 2009.

Rahm Emanuel,
incoming White House chief of staff, hinted on Sunday that his boss
could be amenable to the Pelosi-Reid proposal. Again, the Times: 

When asked on ABC’s “This Week” where Mr. Obama stood on the issue,
Mr. Emanuel seemed to suggest that Mr. Obama, as a last resort, might
be open to tapping the rescue fund to help carmakers, calling the auto
industry an “essential part of our industrial base.”

He added
that Mr. Obama has asked his economic team to look at ways to involve
the industry in shaping an energy policy that weans the country off
foreign oil, seeking ways to use the $25 billion in loans that Congress
passed in September to help make auto plants more capable of producing
fuel-efficient cars.

The Bush White House, for its part, has indicated it would not support using bailout funds for the Big Three.

Photo: MarkinDetroit/Flickr