LANSING – Using $25 billion of the $700 billion federal financial bailout to prop up the Big Three in the midst of the global financial crisis appeared to be in limbo on Tuesday as the top executives for the automakers testified before Congress.

The U.S. Senate is expected to hold a vote on the legislation, although news throughout the day questioned whether there were enough votes for the measure to pass.

That news prompted Michigan’s two U.S. senators to leave the door open for getting the $25 billion bridge loan from Congress’s previously approved loan for the automakers to retool their plants to make more fuel efficient vehicles. That money has been tied up as the U.S. Department of Energy promulgates rules regarding its distribution.

U.S. Sen. Carl Levin (D-Detroit) told the Detroit Free Press how Congress approves financial support for the automakers isn’t as important as getting to that final result.

U.S. Sen. Debbie Stabenow (D-Lansing) also expressed the same sentiment to the newspaper; however, in her testimony later in the day to the U.S. Senate Banking, Housing and Urban Affairs Committee she did not mention an alternative for the funding.

Instead, after waiting more than an hour for committee members to make statements, Ms. Stabenow said the failure or bankruptcy of any of the automakers is not an option.

She said not only would either of those situations create further job losses, but bankruptcy would put tremendous strain on the federal Pension Benefit Guaranty Corporation, as well as federal social services programs like Medicare.

“At a time when we need people to have money in their pocket and pay their mortgage…and have a demand side of the economy…this would be disastrous,” she said.

Stabenow also answered several questions committee members had posed in statements regarding the concessions union members have made, as well as the restructuring the automakers have gone through. And to prove her point, Stabenow offered to give committee members a tour of all the closed auto plants in Michigan.

After members made their statements, committee chair U.S. Sen. Chris Dodd of Connecticut said while it is obvious some lawmakers will never sign off on helping automakers there are several lawmakers who are willing to consider the move, even if they want strings attached.

The committee also took testimony from the executives of the Big Three, as well as the head of the UAW.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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