White House says doesn't want automakers to fail

17/11/2008 - 12:41

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WASHINGTON (Reuters) - The White House on Monday said it did not want automakers to fail but aid should be provided through government loans appropriated for the industry by Congress and not from the $700 billion (469 billion pound) financial rescue package.

"The administration does not want U.S. automakers to fail, and in fact we support assistance to automakers," White House spokeswoman Dana Perino said. The Senate plans to consider auto bailout issues on Monday.

She repeated the White House position that a $25 billion Energy Department loan program should be used to help the ailing auto industry rather than the financial rescue package.

"We should not seek additional funding while $25 billion sits available in a program that was designed for automakers," Perino said.

Legislation favoured by the Democratic leadership in Congress but opposed by the White House would extract up to $25 billion in loans from the Treasury Department's corporate rescue program.

"Taxpayers should not be asked to subsidize private companies that are unwilling to show that they can be viable. It is clear that U.S. automakers must restructure in order to be viable," Perino said.

(Reporting by Tabassum Zakaria)

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