Auto Bailout Package Should Be Ready Soon

Washington, DC, Dec. 15, 2008--President George W. Bush said it shouldn't take long to craft a bailout plan for the Detroit 3 automakers.

The president, traveling on Air Force One from Iraq to Afghanistan last night, said he “signaled” his administration is considering using money from the $700 billion fund. Bush said he’s “not quite ready” to announce any rescue plan.

GM Chief Financial Officer Ray Young met yesterday with administration staff seeking agreement on the size of the short- term loans, a person familiar with the talks said. A decision may not be made today, the person said.

Without an agreement, the world’s largest automaker and smaller Chrysler may be only weeks away from insolvency, both companies said in congressional hearings Dec. 4-5. GM is reeling from almost $73 billion in losses since 2004 and a 22 percent slump in U.S. sales this year. The automaker last month said it lost $4.2 billion in the third quarter.

Chrysler has been battered by a 28 percent plunge in U.S. sales through November, the most among major automakers.

The Bush administration agreed Dec. 12 to consider options after the Senate failed to reach a compromise on $14 billion in aid. Republicans objected to a House-passed plan that was backed by Bush.