Demos ask Big 3 for a detailed loan plan

WASHINGTON — Democratic leaders ordered Detroit's Big Three automakers Friday to submit what amounts to a detailed loan application to Congress so lawmakers can decide whether to give the beleaguered industry an emergency $25 billion lifeline.

In a letter to the auto executives released Friday afternoon, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid demanded a detailed accounting by Dec. 2 of the companies' financial condition and short-term cash needs, as well as how they would achieve long-term viability.

"The auto companies' shareholders, business partners and prospective benefactors — the American people — deserve to see a plan that is accountable to taxpayers and that is viable for the long-term," Pelosi, D-Calif., and Reid, D-Nev., wrote.

The Democrats also called on the automakers to show how they would ensure that the government would be reimbursed and share in future profits, eliminate dividends and lavish executive pay packages, meet fuel-efficiency standards, and address their health care and pension obligations to workers if they got the federal help.

The Bush administration sharply criticized the Democrats for departing Washington for a congressional recess without acting on a rescue for the carmakers.

"How could they leave town when the auto companies were just here (this) week saying some of them were on the verge of running out of cash?" Commerce Secretary Carlos Gutierrez said in an interview. "I think it's a very irresponsible attitude toward a very serious matter."

White House press secretary Dana Perino said it was "appalling that Congress decided to leave town without addressing a problem that they themselves said needed to be addressed."

And President George W. Bush himself went on the offensive — although with more reserved language — to press the point that leaders failed to grab onto a bipartisan proposal.

"Unfortunately, the leadership in Congress adjourned without even allowing this measure to come up for a vote," Bush said in his Saturday radio address, taped Friday and released early by the White House. "My position is clear: If the automakers are willing to make the hard decisions needed to become viable, they should be able to receive the funds Congress already allotted to them for other purposes."