Published: December 01, 2008 10:50 pm      

GM, Ford boards meet on auto bailout

WASHINGTON -- Ford Motor Co.'s board of directors is meeting today to consider the Dearborn automaker's plan it will submit to Congress on Tuesday, a person familiar with the matter said.

The automaker is crafting a roughly 20-page document to submit to Congress that doesn't seek immediate aid, but rather seeks essentially a multi-billion government line of credit that it could tap in the event the economy turns significantly worse next year. The plan will address executive compensation, travel and how Ford would use the funds if necessary.

At hearings last month, Ford President and CEO Alan Mulally said the company was seeking access to about $7 billion.

Ford said Monday it is considering a sale of its Volvo unit.

General Motors Corp.'s board is holding a second day of meetings Monday after a session on Sunday to consider its plan, which includes restructuring debt, executive compensation cuts and eliminating up to four brands.

Also Monday, Sen. George Voinovich, R-Ohio, sent a letter to House Speaker Nancy Pelosi, D-Calif., and Sen. Majority Leader Harry Reid, D-Nev., urging them to move quickly. Voinovich is a leading sponsor of a compromise bill with Sen. Carl Levin, D-Detroit, to give the auto industry $25 billion to emergency loans by mid-January.

Congress is expected to return to session next week, after the House and Senate hold hearings on the automakers' plans on Thursday and Friday.

"The time for Congress to act is now," wrote Voinovich, who is co-chair of the Senate Auto Caucus.

He also raised concerns about how Congress will handle confidential information from the automakers. "I am also concerned about how Congress will handle sensitive financial information that cannot be disclosed legally," he wrote. "Will you impose adequate safeguards to ensure that such information is not inappropriately distributed and that it does not fall into the hands of those who might use it for their own profit?"