Auto bailout plan collapses in the Senate. Looks like help is no where to be found for American automakers. The congressional deal that would have provided a $14 million infusion collapsed in the Senate Thursday night. Despite a breakthrough in the negotiations between Democratic leaders, union officials and representatives from the three companies earlier Thursday, that apparently produced a deal that was amenable to Senate Republicans, Senate Majority Leader Harry Reed announced late Thursday that the deal was off. Representatives of at least two of the carmakers to Congress last week that if it did not get additional funds by year’s end they would be forced into bankruptcy. But Republicans said the wrench in the bailout plan was that the unions would not agree to cutting salaries. A disappointed White House announced that in light of the bailout collapse, it would look at other possible funding options. “It’s disappointing that Congress failed to act tonight,” a White House statement said. “We think the legislation we negotiated provided an opportunity to use funds already appropriated for automakers and presented the best chance to avoid a disorderly bankruptcy while ensuring taxpayer funds only go to firms whose stakeholders were prepared to make difficult decisions to become viable.” The Wall Street Journal reported Thursday evening that General Motors had hired lawyers and bankers to consider whether to file for bankruptcy.

The White House and Congress agree on auto bailout deal. The White House and congressional Democrats reached a tentative agreement Tuesday night to bail out the auto industry with $15 billion in loans. According to a Bush administration official and a Democratic aide, the plan maps out key points, but there are a few details still to work out before the bill is ready for a vote, which could take place as early as Wednesday. The bailout would allow GM and Chrysler to avert a threatening bankruptcy through March, and would designate a “car czar” to help the companies restructure. Ford Motor Co, which has not requested immediate help, has asked for a line of credit in case its finances worsen, according to Reuters. Congressional Democrats and the White House have agreed that the money would come from an Energy Department fund established in September to help Detroit make more fuel-efficient cars. Key Democrats urged both President Bush and President-elect Barack Obama to help rally bi-partisan support for the pending measure, Reuters reported. by Democrats and Republicans for the pending measure.

Congress reaches a deal on a car maker bailout. Working with President George Bush over the weekend, Congressional leaders worked out a plan that would provide the failing Big Three automakers some relief, according to press reports. The deal would provide car makers with an infusion of $15 billion in low-interest loans, which is far short of the $34 billion they told the Senate last week they need to stay afloat, but enough to tide them over until March, when the Obama administration will have a chance to mull over any future funding measures. President-elect Barack Obama is backing a car industry funding compromise, but says the auto industry must come up with a top to bottom restructuring if it’s going to survive, even calling for some of the heads of the companies to resign if they don’t produce. “I don’t think it’s an option to allow them to collapse,” he said during a press conference on Sunday to announce his Veterans Affairs pick. But he added, “I think Congress is doing exactly the right thing by asking for a conditions-based assistance package that holds the auto industry’s feet to the fire.” But don’t expect smooth sailing for the plan, which is expected to be introduced in the Senate on Tuesday. Calling the bailout a “bridge loan to nowhere” on Sunday, Sen. Richard Shelby (R-Ala.), a ranking member of the Senate Banking Committee, is threatening to filibuster any automaker bailout plan. “This is a down payment on many billions to come,” he told Fox News on Sunday. Congressional leaders say the congressional bailout measure most likely will be introduced on Tuesday.