Repentant automakers find US Congress still skeptical about aid plan

DESPERATE US automakers ran into fresh obstacles from skeptical lawmakers yesterday as they appealed with rising urgency and a new dose of humility for a US$34 billion bailout. Without help, said one senator, "We're looking at a death sentence."

With lawmakers in both parties pressing the automakers to consider a pre-negotiated bankruptcy, which they have shunned consistently, the Big Three were contemplating a government-run restructuring that could yield results similar to bankruptcy, including massive downsizing, in return for the bailout billions. There was no assurance they could get even that.

And that wasn't all the unwelcome news. Congressional officials said during the day that one leading proposal, to tap an already-approved fund set aside for making cars environmentally efficient, would fail to supply the carmakers nearly as much money as they say they need.

The auto executives pleaded with lawmakers at a contentious Capitol Hill hearing _ their second round in less than a month -- for emergency aid before year's end. But with time running out on the current Congress, skepticism about the bailout appeared to be as strong as ever.

"In all due respect, folks, I don't think there's faith that the next ... three months will work out given the past history," said Democratic Sen. Charles Schumer.

"No thinking person thinks that all three companies can survive," said his Republican colleague, Bob Corker.

Christopher Dodd, Democratic chairman of the Senate Banking Committee, was the senator who spoke of a death sentence, although he also said, "We're not going to leave town without trying" to help.

The auto executives are to make their case at a House of Representatives hearing on Friday, and Congress could take up rescue legislation next week in an emergency session.