Top Senate Democrat sees auto bailout by Wednesday

Congress and the White House struggled to clear the final obstacles on a $15 billion bailout of the auto industry on Tuesday, seeking agreement by day’s end followed by swift passage.

The unresolved issues concerned the precise extent of the authority to be given to a powerful new auto czar named by President George W. Bush, according to congressional aides, although it was clear the companies could be forced to return any aid if they did not use the money to ensure their long-term survival.

Senate Majority Leader Harry Reid said he hoped for a vote by Wednesday, as congressional Democrats and White House officials traded legislative proposals behind the scenes, nearing agreement on the final details.

The core of the bill – and its aim – was not in dispute. It would provide emergency loans to two of Detroit’s Big Three auto makers – Ford Motor Co. has said it doesn’t need an immediate cash transfusion – and create a presidentially named “car czar.” The federal overseer would supervise a broad industry restructuring and would be empowered to yank the money back if the carmakers weren’t doing enough to ensure their own survival.