White House: No immediate auto deal

The administration also could do nothing, leaving open the possibility that one or more of the automakers could go bankrupt. But White House press secretary Dana Perino said Friday a collapse of the auto industry would have a "severe impact on our economy," and it would be "irresponsible" to destabilize the economy.

The White House is keeping President-elect Barack Obama and his advisers informed of the discussions. If administration officials choose not to provide the money now, the Obama team could wait for the new Congress, which will have stronger Democratic majorities.

Providing aid to the companies could represent a change for the White House, which has previously insisted that the Wall Street rescue plan enacted in October should be used solely to help financial institutions.

Michigan Gov. Jennifer Granholm, a Democrat, said Sunday other countries were providing aid to their automakers and the loans were essential to help make the U.S. less dependent on Middle Eastern oil.

If the companies don't get help, "we'll be replacing our reliance on foreign oil with a reliance on foreign batteries because it's going to be the battery that's driving the electric vehicle in the future," Granholm said on NBC television's "Meet the Press."

Former Massachusetts Gov. Mitt Romney, a Republican and Michigan native whose father, George Romney, served as chairman of American Motors, said he supported the decision by Congress to reject the efforts of the auto chief executives for the federal help.

"They basically came to Washington and said give us a check so we can continue to fund business as usual," Romney said.

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