Senate to debate aid proposal for automakers

The Senate will gather in lame-duck session Monday to debate whether to keep the U.S. auto industry afloat. Senate Democrats propose to divert up to $25 billion from the $700 billion bailout Congress enacted for the financial industry.

Concerned they were short of votes, supporters on Saturday said they would settle for less than $25 billion. But that may not be enough.

A few Republicans —- with auto plants in their states —- have said they back the proposal. But Democrats hold only a 51-49 advantage in the Senate, and that will fall to 50-49 when Obama formally gives up his seat on Monday.

ISAKSON, CHAMBLISS OPPOSED

Georgia’s two U.S. senators say they won’t back the bailout. Indeed, Sen. Johnny Isakson says the automakers belong in bankruptcy court, not in taxpayers’ pockets.

“Quite frankly, I think the automobile industry needs it,” Isakson said, referring to bankruptcy protection. “To think for one minute that GM is going to close their doors is wrong. … They’ll file for bankruptcy protection, and then they’ll begin to reorganize their company.”

U.S. Sen. Saxby Chambliss (R-Ga.) offered similar sentiments: “The automobile industry has systemic, deep-rooted problems that money will not solve, and I will not support funding any additional relief to the auto industry.”

Chambliss, locked in a tight runoff with Democrat Jim Martin, will be in the Senate for this week’s debate, his office said.

Isakson also made the points that 1) the $700 billion bailout was intended for the financial industry, not the car business, and 2) taxpayers will get back what they invest in the financial sector.

UAW: DON’T LOOK AT US

United Auto Workers President Ron Gettelfinger said Saturday that the UAW won’t make any more concessions and said the best way to rescue the auto industry is to turn the economy around. “We cannot afford to allow to see this industry collapse,” said Gettelfinger, who asserts that autoworkers have given up enough. “There is a real concern that could happen.”

WHAT THEY’RE SAYING

“For the auto industry to completely collapse would be a disaster in this kind of environment. So it’s my belief that we need to provide assistance to the auto industry. But I think that it can’t be a blank check.”

President-elect Barack Obama

“It’s going to be money down a rathole.”

Sen. Richard Shelby (R-Ala.)