Senators present auto bailout plan

U.S. senators from both parties presented their alternative for providing $25 billion in bridge loans as near-immediate help to the ailing U.S. auto industry.

The plan presented by Sen. Carl Levin, D-Mich., would draw the funds from $25 billion already approved for automakers to update plants to produce fuel-efficient vehicles.

"We cannot allow the issue" of the funding source overshadow the need for quick action, Levin said during a news conference where he outlined the alternative.

The plan is a hybrid of the $700 billion rescue plan for U.S. financial markets, he said. It includes taxpayer protections, guards against so-called golden parachutes or excessive executive pay and allows auto suppliers to be eligible to apply for the bridge loans. It would be overseen by the U.S. Commerce Department.

The structure of the previously passed loan program would remain as would the environmental standards. Loan repayments would be used to replenish the fund, Levin said.

Congressional leaders, meanwhile, said they wanted automakers to submit plans detailing how they would spend federal fund before receiving any. Plans are to be submitted by Dec. 2 and hearings would be conducted Dec. 8.

Just as congressional leaders called for long-terms plans from Detroit's "Big Three," the alternative also would require plans be submitted with loan applications. But the administrative agency, not Congress, would determine which plans would lead to financial viability.

"We're disappointed we're not going to act (on the bipartisan plan) today," Levin said. "We believe that there's a reasonable chance that if this were put to a vote today or tomorrow that it could get the 60 votes necessary."