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A $14 billion auto industry bailout bill
stalled in the Senate on Thursday, and Republicans demanded upfront
concessions from the United Auto Workers as the price for support
needed for passage.

      UAW officials were in talks with key lawmakers, congressional
officials said, although it wasn't clear what, if any, givebacks
the union was willing to discuss.

      The developments unfolded after Senate Republican leader Mitch
McConnell of Kentucky joined other GOP lawmakers in announcing his
opposition to a White House-backed bill that was approved by the
House on Wednesday. He called for an alternative that would reduce
the wages and benefits of the Big Three automakers to bring them in
line with those paid by Japanese carmakers Nissan, Toyota and
Honda.

      Sen. Chris Dodd, D-Conn., the Banking Committee chairman, was in
closed-door negotiations with Sen. Bob Corker, R-Tenn., the sponsor
of that proposal, to see if it could be modified to win the support
of Democrats, who count labor unions among their strongest
political allies.

      Congressional officials described the maneuvering on condition
of anonymity because they were not authorized to disclose the
discussions.

      A growing number of Republicans and Democrats were turning
against the House-passed bill - itself the product of hard-fought
negotiations between the Bush White House and congressional
Democrats - despite urgent entreaties from both President George W.
Bush and President-elect Barack Obama for quick action to spare the
economy the added pain of a potential automaker collapse.

      The rescue plan would speed emergency short-term loans to
cash-starved General Motors Corp. and Chrysler LLC.

      Ford Motor Co. would be eligible as well but has said it has
enough cash to survive without federal help.

      The measure would create a Bush-appointed overseer - a kind of
"car czar" - to dole out the money but also with authority to
yank it back if the carmakers didn't cut quick deals with their
unions and creditors, among others, to restructure.

      McConnell said that measure "isn't nearly tough enough."

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Business and Economic News

A $14 billion auto industry bailout bill
stalled in the Senate on Thursday, and Republicans demanded upfront
concessions from the United Auto Workers as the price for support
needed for passage.


Auto bailout stalled, GOP seeks UAW concessions

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