U.S. lawmakers are considering ways to help America's struggling auto industry, which has suffered from rising fuel costs and the shrinking economy.
Congressional Democratic leaders are scheduled to discuss the car industry with the top U.S. economic officials Monday. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke will also brief lawmakers on the $700 billion economic rescue plan.
Democratic lawmakers want to use $25 billion of the rescue plan to help the three major U.S. automakers - General Motors, Ford Motor Company and Chrysler.
White House spokeswoman Dana Perino says President George Bush wants to help the auto industry, but opposes the Democratic proposal.
Instead, the Bush administration suggests the automakers get their finances in order by using a previously approved loan from the Energy Department. The $25 billion loan was meant to help automakers update their technology to build more fuel-efficient vehicles.
Auto executives are to appear before Congress Tuesday, and lawmakers are expected to vote on the proposed auto aid by Wednesday.
Senate Democrats are unlikely to have enough votes to pass their proposed auto rescue plan.
Automobiles are a key part of the manufacturing sector, which makes up nearly one-fifth of the U.S. economy.
A new report says factory activity in the New York state region shrank this month at the fastest pace in seven years.
A separate report says nationwide manufacturing rose slightly, reflecting a return to more normal operations after some plants were slowed by hurricane damage earlier.
Many experts believe the U.S. economy is headed towards a recession.
President-elect Barack Obama said in an interview with CBS's 60 Minutes Sunday the government will have to spend money now to stimulate the economy, without worrying about the deficit in the next couple of years.
Stock prices fell in U.S. trading Monday after Citibank announced massive job cuts.
Some information for this report was provided by AFP and Reuters. Reported by VOA.
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