House Speaker Nancy Pelosi's plan to aid troubled US automakers threatens to spark a final clash with President George W Bush before he leaves the White House in January.
Pelosi said on Tuesday she wants “immediate action” to give automakers additional assistance as shares of General Motors Corp. hit their lowest level since 1943 and analysts said the company faces possible bankruptcy.
Bush hasn't said he would approve any further aid to those companies. Richard Shelby, the Senate Banking Committee's top Republican, opposes the measure.
Senate Democratic Leader Harry Reid made clear the bill's prospects of winning passage in this month's “lame duck” session rely on help from both congressional Republicans and Bush. Democratic gains in both chambers from the November 4 elections won't go into effect until the new Congress convenes on January 6. President-elect Barack Obama takes office two weeks later.
“There's no doubt in my mind that a bailout is on the way, I'm just doubtful it will happen during a lame duck,” said Clint Currie, transportation analyst for Stanford Group Co in Washington.
