Prospect for auto bailout dims

By John Crawley and Kevin Drawbaugh

WASHINGTON (Reuters) - Chances dimmed that a last-minute plan being crafted by Republican U.S. senators, with White House support, to provide $25 billion (16 billion pounds) to bail out U.S. automakers would receive enough backing from Democrats to pass before the end of this week.

As the hours ticked down on this year's legislative session, Democratic leadership expressed deep scepticism the talks would lead to a compromise acceptable to all parties.

Congress has at most two days remaining in its post-election session. Without a deal in that time, any bailout is likely to have to wait until the new Obama administration takes over in January.

"I won't say it's completely over. I'm still having conversations with people. But it doesn't look good," Sen. Robert Bennett, a Utah Republican, said of chances lawmakers would strike a deal that could pass.

Failure to craft a deal carries the risk that one or more of the U.S. automakers -- General Motors, Ford Motor or Chrysler -- could be forced into bankruptcy.

Senate Minority Leader Mitch McConnell said in remarks on the Senate floor that the compromise "is the only proposal being considered" that has any chance of becoming law now.

The approach, spearheaded by Republicans Christopher Bond of Missouri and George Voinovich of Ohio, would amend a plan that extended $25 billion approved in September for helping Detroit retool factories and make more fuel-efficient cars.

A number of strings attached to the retooling money would have to be cut or reworked to make it available immediately for operational and other pressing needs.