At the dealer

WASHINGTON-Detroit's Big Three automakers pleaded with Congress on Tuesday for a $25 billion lifeline to save their once-proud companies from collapse, warning of broader peril for the national economy as well.

Facing the Senate Banking Committee, the leaders of General Motors, Ford, and Chrysler presented the dire economic outcome of their failure, even as the $25 billion legislation, which would dip into the $700 billion bailout, looked doomed in Congress due to opposition from Republicans and President Bush.

As car sales plummet, the Big Three are finding themselves short on cash and facing bankruptcy, though Ford is not in such desperate straits as Chrysler and GM.

"It would be better to let them go through that process," testified Peter Morici from the University of Maryland, referring to Chapter 11. "If you give them $25 million this month, they will be back."

Lawmakers asked the auto chiefs to explain how they would continue to have viable companies with the bailout, and how they would reform themselves.

"Some want to know if you're willing to admit any mistakes that you've made in the last years," said Sen. Chris Dodd, D-Conn., before the CEOs testimonies.

Richard Wagoner, chief executive of GM, blamed the global financial crisis for their current crisis.

Failure of the auto industry "would be catastrophic," he said, resulting in three million jobs lost within the first year and, potentially, weaker national security.

The CEOs refuted the "dinosaur" status many have assigned to the U.S. auto industry. Wagoner said that they plan to have nine hybrids on the market next year.

Few lawmakers were impressed.

"Why should we believe your firms should be able to restructure now when you couldn't under more benign circumstances?" asked Sen. Richard Shelby, R-Ala.

Dodd told the CEOs that the industry was "seeking treatment for wounds that were largely self-inflicted."

Republicans have argued that the auto industry already has $25 billion available that was appropriated in September for the development of fuel efficient vehicles, money that could save the companies until Congress reconvenes. The White House thinks a bailout now would be a waste of money, too.

"We don't think that taxpayers should be asked to throw money at a company that can't prove that it has a long-term path for success," said White House Press Secretary Dana Perino.

Senate leaders decided Wednesday that they would not vote on the legislation this session. The Associated Press contributed to this report.