(Recasts first sentence, adds comments by Dodd, Durbin,
Voinovich, White House)
By John Crawley
WASHINGTON, Nov 19 (Reuters) - Senate negotiators sought on
Wednesday to craft a compromise plan to bail out distressed U.S.
automakers as industry chief executives came under new pressure
from lawmakers to justify urgent assistance.
With a $25 billion Democratic bailout proposal in the Senate
stalled due to weak support, the legislative emphasis shifted to
a plan endorsed by Republicans and the White House. But
prospects for a deal were far from certain with time running low
on the abbreviated congressional session.
Minority Leader Mitch McConnell said in remarks on the
Senate floor that a compromise effort "is the only proposal
being considered" that has any chance of becoming law now.
"There is a way forward that will help protect the jobs in
the auto industry, while also protecting taxpayers," McConnell,
a Kentucky Republican, said.
A senior Democrat, Banking Committee Chairman Christopher
Dodd, said he was "anxious to see something happen" but
"frankly, the idea that there's going to be a bill, I think is
remote."
General Motors Corp, Ford Motor Co and Chrysler LLC are
burning through billions in cash monthly and have little to no
ability to raise capital in the private markets due to their
poor financial health and the global credit crunch.
Chief executives from the three manufacturers warned at a
Senate hearing on Tuesday and again on Wednesday before the
House of Representatives of potential industry failure and
broader economic hardship without immediate government aid.
"We don't like being here asking for this," said GM Chief
Executive Rick Wagoner. "So at this point, without injections of
liquidity ... probably some portion of the domestic industry
will not survive."
The executives, who came under fire for taking private jets
to Washington to ask for a bailout, say bankruptcies are not an
option. Lawmakers also questioned whether Detroit would be back
for help down the road, since the car companies' finances are so
poor.
"Is this a downpayment or a final number?" asked Rep.
Michael Castle, a Delaware Republican. "I'm not sure there is an
easy recovery."
With a Democratic effort to finance a bailout through the
Treasury Department financial services rescue fund stalled in
the Senate, lawmakers from that chamber launched negotiations on
a compromise.
The approach spearheaded by Republicans Christopher Bond of
Missouri and George Voinovich of Ohio would, according to
McConnell and other lawmakers, extend up to $25 billion in loans
approved in September for helping Detroit retool factories and
make more fuel-efficient cars.
Voinovich said there are "a lot of discussions with the
Democrats" and there is hope for a deal by day's end.
Carl Levin, a Michigan Democrat and chief proponent of
bailout efforts in the Senate, told reporters outside the House
hearing that the common goal was still $25 billion.
"It would be unthinkable for Congress not to be able to
reach a conclusion when the leadership of the Congress, the
president and president-elect all say they support bridge
loans," Levin said.
But Senate Democratic Leader Richard Durbin of Illinois said
enough Senate support for a deal using retooling loans was not
assured and he had been told that the Democratic-led House of
Representatives did not favor the approach.
"If that is the case, it is not going to happen," Durbin
said.
The White House expressed support for the compromise, saying
it believes the Bond-Voinovich amendment would have bipartisan
support.
(Additional reporting by Matt Spetalnick, Kevin Drawbaugh,
Donna Smith and Rick Cowan, editing by Gerald E. McCormick and
Matthew Lewis)
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