House Speaker Nancy Pelosi has called for an unscheduled meeting of Congress to discuss the rescue of American automakers. Pelosi supports legislature that would change the rules of the $700 billion financial sector bailout to include U.S. automakers. Lawmakers have also discussed changing the wording of the $25 billion Department of Energy loans to let carmakers use the money as a bailout.
Congress normally does not meet in the time between an election and the inauguration of new Congress members. Any action aimed at saving U.S. automobile companies would need to be swift. GM is constantly cutting back on production and employees in order to prolong its cash reserves, but still could run out of money by the middle of next year.
Pelosi said that government intervention is needed "in order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry."
Senate Majority Leader Harry Reid said that he believes President Bush and Senate Republicans would support help for the auto industry.
Pelosi said any government assistance for the auto industry should include rules limiting executive compensation and allow government supervision to protect taxpayers, according to FOX News.