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White House: No Immediate Auto Deal, Japanese Carmakers Worried Too

WASHINGTON (AP) - There's still no firm signal from the White
House on executive action to keep the auto industry from spinning
out.
And the White House says it's not likely Monday will bring any
change.
President George W. Bush aboard Air Force One during an
unannounced trip to Iraq and Afghanistan did say again on Sunday he
wants to avoid the economic devastation an abrupt bankruptcy would
cause.
He also reiterated that the use of money from the $700 billion
financial bailout fund to provide loans to the carmakers is still
on the table.
Bush says the administration is not quite ready to announce a
plan yet, but noted that it won't take long because of how fragile
the industry is right now.
Discussions involve the amount of funding and any potential
conditions for GM and Chrysler. Ford says it can survive 2009 but
asked Congress for a line of credit in case the financial markets
deteriorate further.
Japanese carmakers aren't celebrating either. They say what's
bad for the U.S. auto industry means trouble for them as well.
The Japanese say the bankruptcy of any of Detroit's Big Three
will cause tremendous damage by impacting parts suppliers as well
as prospective customers.


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