One President At A Time: Obama works behind scenes on auto crisis, Bush buyin' mansions, Stretch

[Amerigo Vespucci]

updated 1 hour, 38 minutes ago

President-elect's team weighing auto industry options

http://www.cnn.com/2008/POLITICS/12/05/obama.auto/index.html

(CNN) -- President-elect Barack Obama has kept a relatively low profile as automakers plead for billions from Congress, but behind the scenes, the incoming administration is working hard on finding ways to ease the crisis.

Obama and his advisers are studying options for helping the automobile industry beyond what Congress does or doesn't do before he steps into office.

Talks on the Hill have included mention of a possible short-term loan for the auto giants to act as a Band-Aid until lawmakers can hammer out legislation with a long-term plan when the new Congress begins next year.

Some lawmakers support giving the government a big role in restructuring the auto companies -- either with an oversight board or an individual -- while other lawmakers have suggested that bankruptcy could be a good thing for the automakers.

CEOs for the Big Three are trying to make their case for a $34 billion loan.

Capitol Hill sources said the Obama team at many levels has discussed the bailout, including talks between Obama and congressional leaders.

Sources have declined to discuss the specifics of those conversations, but one Capitol Hill source said the Democratic leadership is not going to do something the president-elect opposes.

While Obama has largely stayed mum on the issue, he has signaled that one option is off the table.

"We can't allow the auto industry simply to vanish," he said last week.