Pelosi supports auto industry bailout

House Speaker Nancy Pelosi wants Congress to support a financial bailout for the troubled U.S. auto industry, which is suffering under the weight of poor sales, tight credit and a sputtering economy.

Pelosi, D-Calif., said Tuesday she was confident that lawmakers would consider “emergency and limited financial assistance” for the auto industry under the $700 billion bailout measure that passed Congress in October. She urged the outgoing Bush administration to support a compromise.

“In order to prevent the failure of one or more of the major American automobile manufacturers ... Congress and the Bush administration must take immediate action,” Pelosi said.

The Bush administration has concluded that the bailout bill that passed earlier does not allow loans to the auto industry.

White House spokeswoman Dana Perino said Tuesday the companies had made business decisions “over the years that have led to this situation, but we have gone as far as we can with the authority Congress has given in order to help industries.” But she said the White House was open to helping the auto industry.