US bailout for auto makers in offing

US auto industry's Big Three appear close to securing a bailout, with Wall Street Journal reporting that the White House and top Democrats have agreed in-principle for a $15 billion rescue plan, less than half the amount sought by GM, Ford and Chrysler.

Quoting a senior administration official and congressional aides, the Wall Street Journal today said: "The White House and top Democrats on Capitol Hill reached agreement in principle on a sweeping rescue package for the nation's auto makers, hoping to propel action this week on billions of dollars in aid."

The legislation would provide billions in loans to the car industry in return for the US government taking a substantial stake and a direct role in the industry's restructuring, the daily said in a report published online.

"The bill would provide short-term funds, expected to total about $15 billion, and would kick off discussions about longer-term taxpayer financing," the Wall Street Journal noted.

General Motors, Ford Motor and Chrysler have already presented their bailout proposals to the tune of $34 billion to stave off a possible bankruptcy.

The auto firms are in deep financial troubles after steep decline in their sales in recent months.