U.S. senators grill auto CEOs

By John Crawley and Kevin Drawbaugh

WASHINGTON (Reuters) - The chief executives of General Motors and Chrysler said they would consider restarting merger talks if needed to win their slice of up to $34 billion (23.2 billion pounds) in emergency U.S. government aid.

"I would be very willing to look at it seriously," GM CEO Rick Wagoner told the Senate Banking Committee on Thursday, adding that merger talks earlier this year were dropped on concerns GM did not have the financing to merge with Chrysler.

Chrysler CEO Robert Nardelli said his job would likely be the first to go in a merger with GM, but if that would save Chrysler and its workers "I would do it."

Leaving their corporate jets in Detroit and driving to Washington, the chiefs of the Big Three automakers, including Ford Motor CEO Alan Mulally, pledged to refocus on higher fuel efficiency vehicles and lower production costs.

But they encountered deep scepticism among lawmakers who are suspicious of such promises, given the companies' past failures to ween themselves from gasoline guzzlers and to make innovative cars that consumers want to buy.

"I don't trust the car companies' leadership," said New York Democratic Sen. Charles Schumer at the hearing.

But in a comment reflecting many lawmakers' sentiments, he added, "We can't let the industry fail."

Most lawmakers want to help Detroit, but existing bailout proposals are stuck in a political gridlock between administrations, with President George W. Bush a lame duck, and President-elect Barack Obama waiting to be sworn in January 20.