(Recasts: company, Fed reaction; details from call)

By John Crawley

WASHINGTON, Oct 23 (Reuters) - The Bush administration should consider dramatic steps to prop up the ailing U.S. auto industry, including bailouts similar to the initiatives underway now for banks or the remedy that saved Chrysler nearly 30 years ago, key lawmakers said on Thursday.

The appeal by Rep. John Dingell, a Democrat and chairman of the House of Representatives Energy and Commerce Committee and other members of the Michigan delegation, conveyed new urgency in Washington for gasping Detroit manufacturers and their affiliated finance companies and dealers.

"The Michigan delegation is pursuing all options and asking that the Bush administration -- Treasury, Fed, FDIC -- also consider all available options," Dingell said in a conference call with most of Washington's staunchest industry allies.

Lawmakers did not advocate a specific solution for General Motors Corp GM.N, Ford Motor Co (F.N: Quote, Profile, Research) and Chrysler LLC, which is mostly owned by Cerberus Capital Management LP [CBS.UL]. They said the manufacturers and relevant agencies should sort that out, along with Congress, if necessary.

Suppliers and dealers also should have a say, the industry's staunchest political allies said.

But they suggested the response could include direct short- term capital injections, loan guarantees, or intervention similar to the cash heavy moves made in recent weeks to shore up U.S. banks and other financial services firms.

Rep. Sander Levin, a Democrat, noted the government "rose to the occasion" to bail out bankrupt Chrysler in 1980 with $1.2 billion in loan guarantees.