Carmakers' bailout plea gaining support

By Kevin Krolicki and John Crawley

DETROIT/ WASHINGTON (Reuters) - A top lawmaker predicted Washington would approve a bailout for U.S. automakers after they submitted survival plans, and General Motors and Chrysler said they needed an immediate infusion of cash to avoid failures.

U.S. House Speaker Nancy Pelosi, a California Democrat, said Washington had little choice about helping the automakers, who say they support one in 10 American jobs.

"I believe that an intervention will happen either legislatively or from the administration," Pelosi said. "I think it's pretty clear bankruptcy is not an option."

The Detroit automakers on Tuesday urged Congress to authorise $34 billion (22 billion pounds) in loans and credit lines, far more than the $25 billion they failed to secure in November when lawmakers demanded the companies offer plans showing they could be made "viable."

The development came on the same day that GM, Chrysler and Ford posted a drop in combined U.S. sales of nearly 40 percent for November and warned that the world's largest vehicle market showed signs of tumbling further in 2009.

GM asked for $18 billion in loans and credit lines from the federal government, saying it urgently needs $4 billion of the money by the end of December to pay its bills.

Ford told Congress it needed a $9 billion taxpayer-funded standby line of credit and said a further restructuring would push it back to profitability by 2011.

Ford and GM shares both gained almost 6 percent.