Pelosi: Aid bill will require Big 3 to restructure, meet fuel-efficiency goals

The auto industry's survival plan must meet several conditions, Pelosi said:

• Restructure the automobile companies to ensure their long-term economic viability;

• Meet standards for fuel efficiency that ensure the competitiveness of U.S. autos, including new fuel-

efficiency standards; and,

• Deploy advanced vehicle technologies required to compete in the domestic and global market.'

The Senate is to take up the auto bailout bill on Monday, with test votes set for Wednesday.

General Motors Corp. and Ford Motor Co. burned through $14.6 billion in cash in the third quarter, with GM

warning it might run out of cash before early next year. Chrysler CEO Robert Nardelli said Thursday it would

be difficult for the automaker to survive without government aid. The automaker doesn't report results since

it is privately held.

Pelosi again rejected the push by the White House late Friday to convert a $25 billion Energy Department

retooling loan program into a source for immediate liquidity for Detroit's Big Thee automakers. Democrats

want to use the $700 billion Wall Street rescue package, known as the TARP, to fund emergency bridge loans

for automakers.

'The appropriate source of funding for this short-term assistance is the Troubled Assets Relief Program

(TARP) recently authorized by Congress. The Democratic plan includes even stronger limits on executive

compensation and assurances to protect the taxpayer,' Pelosi said. 'Any effort to divert funds from the

advanced technology initiative contained in section 136 of last year's energy bill is a step backward in

assuring the viability and competitiveness of the U.S. auto industry.'

GM could need anywhere from $15 billion to $25 billion in government aid to survive, various Wall Street

analysts have suggested. Automakers want to be able to tap the retooling funds next year, rather than being

required to return to Congress for more money.

Detroit's Big Three are struggling as auto sales plunge. Consumers worried about the weak economy are

staying away from showrooms.

Auto sales are on pace to fall to their lowest levels in more than 15 years in 2008 and many predict 2009

could be nearly as bad.

The CEOs of GM, Ford and Chrysler, along with UAW President Ron Gettelfinger, are expected to testify before

both houses of Congress next week in an urgent appeal for immediate aid.