Bush defends auto bailout

President Bush on Saturday defended his decision to bail
out the U.S. auto industry, but he did so without addressing some of the
loudest criticisms from Democrats and members of his own party.

In language borrowed wholesale from his announcement of
the $17.4 billion loan package Friday, Bush used his weekly radio address to say
that he could not allow the domestic auto industry to collapse.

{mosads}“The actions I’m
taking represent a step that we all wish were not necessary,” Bush
said. “But given the situation, it is the most effective and responsible
way to address this challenge facing our nation.”

Republicans have
complained that the president has opened the door to allowing other industries
to seek bailouts. Democrats are angry that Bush is forcing autoworker pay down
to the levels of foreign autoworkers in U.S. plants by the end of 2009 and are already
urging President-elect Obama to discard the requirement once he takes office.

The loans for
General Motors and Chrysler will come from the $700 billion bailout package
intended for Wall Street. The companies would get $13.4 billion in immediate
loans, and could tap into an additional $4 billion in loans early next year.

The automakers
using the funds have three months to offer plans for restructuring themselves
into viable companies. Those that fail to do so will have to repay the loans by
March 31.

Republicans have
argued that failing companies should have to file for bankruptcy. Bush said
that is still an option, but that the loans he is offering will give the
companies time to draw up plans for an orderly restructuring process.

“If
restructuring cannot be accomplished outside of bankruptcy, the loans will
provide time for companies to make the legal and financial preparations
necessary for an orderly Chapter 11 process that offers a better prospect of
long-term success,” Bush said Saturday.