WASHINGTON (AP) - Treasury Secretary Henry Paulson notes that autos are a "critical industry" for the nation. But he says the government's $700 billion financial rescue program wasn't designed to help automakers.
Asked about Democratic congressional leaders' plan to rush financial aid to the industry, Paulson cautioned that "any solution has got to be leading to long-term viability" for auto companies.
He said Congress could try to make funding more available to the auto industry as part of a $25 billion loan program approved in September to develop fuel-efficient vehicles.
House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid are pushing for something more sweeping to help the industry, which is suffering under the weight of poor sales, tight credit and a sputtering economy.
Democratic aides: Pelosi supports automakers help
WASHINGTON (AP) - Democratic aides say Speaker Nancy Pelosi intends to seek legislation to provide relief to the battered auto industry, and wants it done in a post-election session of Congress likely to convene in the next few days.
Pelosi is not expected to specify how large a bailout she wants. The aides who described her views Tuesday did so on condition of anonymity, saying they were not authorized to discuss it publicly. The speaker's decision comes a few days after General Motors warned it is rapidly running out of cash, and Ford announced its situation was only slightly better.
President Bush would have to agree to sign the legislation, which would be passed well before President-elect Obama takes office.
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