By John Crawley and Thomas Ferraro
WASHINGTON (Reuters) - The White House urged Republicans in the Senate on Thursday to back a $14 billion bill to bail out the U.S. auto industry -- but a rescue seemed dead unless all sides could agree on an elusive alternative.
"Everybody is trying to figure out how we can move forward. It's a long shot but I think we could still come out with something," a Senate Democratic aide said.
Votes could come later Thursday or Friday on at least two and perhaps three measures.
With President George W. Bush's influence waning in the final weeks of his unpopular administration, "no one cares what the White House thinks," a Republican aide said.
Republicans appeared to have more than enough votes to stop White House-backed legislation with a procedural roadblock that would require 60 votes to clear in the Democratic-led Senate.
The House of Representatives passed its version of the legislation on Wednesday. The Senate could take up that bill as well as a similar one of its own or a Republican alternative.
The aim is to prove an economic lifeline to "The Detroit Three" -- General Motors Corp, Chrysler LLC and Ford.
Democratic Senate Leader Harry Reid challenged Republicans to offer an alternative, if they could agree on one.
With lots of members having lots of ideas, freshman Sen. Bob Corker, a Tennessee Republican, proposed a measure that would give loans to automakers with a provision that GM and Chrysler debt must be cut by two-thirds by March 15 or they must file for bankruptcy.
"Senator Corker has proposed an amendment that would go a long way toward improving this bill," Senate Republican Leader Mitch McConnell of Kentucky.
Corker would require U.S. automakers to cut wages for union workers to levels of those paid by nonunion foreign competitors in Tennessee and elsewhere in the United States. The provision was certain to face resistance from pro-union Democrats.
But Democrats wanted to examine language of Corker's proposal to see if it could provide a framework for a possible compromise, a party aide said.
If Democrats fail to pass a bailout, they could try again on January 6 when the new Congress convenes with Democrats in expanded control of the 100-member Senate. They are expected to hold at least 58 seats.
The White House could also reverse course and help automakers by dipping into the $700 bailout approved in October for the financial services industry.
"Both are options," a Democratic aide said. "The question is could automakers last that long" without an immediate infusion of federal cash.
DIGGING IN THEIR HEELS
Shares of GM and Ford Motor Co. were down 8 percent and 5 percent, respectively, on the New York Stock Exchange. Chrysler is privately owned by Cerberus Capital Management.
President-elect Barack Obama, who has advocated short-term assistance for the car companies, said he remained hopeful a deal could be reached this week to avert their collapse, which he said would be devastating.
Republican are resistant to the White House-backed bill, which was drafted with Democrats. They blame Bush and his failed fiscal policies for contributing to their loss of seats in last month's congressional elections.
They are reluctant to write another check for private industry after a Wall Street bailout Congress approved at Bush's request, triggering voter backlash.
Seeking to regroup as more fiscally responsible in advance of the new Congress set to convene on January 6, Republicans also question if the auto plan would work or merely increase the record federal deficit.
Backers say a bailout is needed to rescue a century-old centerpiece of the U.S. economy and prevent a deepening of the U.S. recession.
Senate Republicans want greater accountability from the automakers in exchange for the loans and greater protection for taxpayers.
Many Republican argue automakers ought to simply reorganize under bankruptcy protection.
White House press secretary Dana Perino sought to rally support and hope for the plan. "We do think that there is a chance that we can get this done," she said.
Chrysler Chief Executive Bob Nardelli, nervous about prospects, wrote his employees and urged them to lobby lawmakers to support the plan.
The United Auto Workers union said "we can't let a minority in the Senate obstruct an urgent response to an economic crisis," the labor group's president said in a statement.
GM and Chrysler are seeking billions by month's end to survive. Ford is asking for a line of credit to be tapped if its finances worsen more than expected in 2009.
The loans are intended to carry the companies through March 31, after which more help would depend on the quality of restructuring plans demonstrating their viability.
(Additional reporting by Ross Colvin, Matt Spetalnick, Rachelle Younglai, Donna Smith and Richard Cowan; Editing by David Alexander and David Wiessler)
