Bush: Conserve fuel, don't expect GM bailout

By John Crawley

WASHINGTON (Reuters) - U.S. President George W. Bush urged motorists on Tuesday to conserve gasoline while automakers move to make their fleets more efficient, and said General Motors Corp and other mainstays of the U.S. economy should not expect a government bailout.

With Bush administration officials seeking congressional approval of a plan to offer an unlimited, temporary line of credit to mortgage giants Freddie Mac and Fannie Mae, there was question on Tuesday whether the government should step in to help GM and other distressed companies -- like it did with smaller Chrysler in 1980.

GM said earlier Tuesday it will intensify its already painful restructuring by cutting another $10 billion in costs, suspending its dividend and selling billions in assets to shore up cash and survive.

As far as Bush is concerned, the old adage, "As General Motors goes, so goes the nation," is no longer a given.

Bush was asked whether the automaker and companies in other distressed industries deserve some kind of temporary government assistance to support them.

"Should the government bail out private enterprise? The answer is no, it shouldn't," Bush said, underscoring that he does not consider the Fannie/Freddie assistance package a bailout because the shareholders still own the company.

Bush has previously advocated self-help for GM, Ford Motor Co and Chrysler LLC to reverse their slide, prompting strident criticism last year for failing to personally address their plight earlier in his presidency.

His administration has offered financial help for research into new fuel technology but far less than the industry wants. Congress also has been slow to approve new tax and other incentives to help automakers retool their plants and invest in new technologies.