Four U.S. senators reach bipartisan car aid deal

By Kevin Drawbaugh

WASHINGTON (Reuters) - Four U.S. senators have reached a bipartisan agreement on a bill to assist the struggling automotive industry, the lawmakers announced in a joint statement on Thursday.

A news conference was planned for 2.30 p.m. (7:30 p.m. British time) "to discuss the details of a bipartisan agreement on a bill to support the auto industry," the statement said.

The lawmakers involved are Michigan Democrats Carl Levin and Debbie Stabenow, as well as Ohio Republican George Voinovich and Missouri Republican Christopher Bond.

Details of the agreement were not immediately available.

U.S. automakers General Motors, Ford and Chrysler have been pleading for $25 billion (16 billion pounds) in emergency government aid to weather a steep business downturn. The CEOs of all three companies testified before two congressional committees this week, but came away empty-handed.

Shares of GM and Ford turned positive on news of the compromise bill. Chrysler is privately held.

The White House favours using $25 billion already authorized and appropriated through the Energy Department to provide loans for ailing automakers.

Democratic leaders in Congress have argued for carving out $25 billion from the $700 billion financial rescue fund.