Next steps for Detroit rescue plan

US lawmakers are now mulling the execution of a possible bailout package for the ailing US auto companies, after the disastrous unemployment report gave a taste of things to come if they allowed Detroit's Big Three to collapse.

Reports said that democrats in the US Senate and House of Representatives have said that Congress could consider legislation next week to provide financial assistance to the troubled US auto companies. However, as of now, there are no definite plans, though senate majority leader Harry Reid, and house financial services chairman Barney Frank have bills to be debated.

In a statement, Reid called on Congress to take steps to keep the auto makers solvent while ensuring "strong oversight" of the auto industry. House speaker Nancy Pelosi and Reid were reported to be polling colleagues to find out if Congress has the necessary political will to rescue General Motors , Ford and Chrysler.

Meanwhile, for a second day at, hearings at Capitol Hill saw chief executives of the Big Three pitch for $34 billion in government loans before the House Financial Services Committee. Reports suggested that comments from the three CEOs, Rick Wagoner of GM, Alan Mylally of Ford, and Robert Nardelli of Chrysler were basically echos from the first day's hearings before the senate banking committee.

The hearings come just after the Labour department issued the latest payrolls report that revealed a loss of 533,000 jobs in November, the worst in 34 years since 1974. That report gave a much wanted impetus to the cause of the auto makers.

Fighting alongside his adversaries, United Auto Workers President Ron Gettelfinger was also at the hearings that see the three auto companies request for money that hinge on the threat of the potentially catastrophic scenario of bankruptcy painted by the three auto majors.