Seeking $25 Billion, Big Three to Get a Second Chance on the Hill

Some analysts say the automakers also need to work on their marketing pitches, recalling the assertive spirit of former Chrysler chief executive Lee Iacocca, who persuaded Congress to bail out Chrysler in 1979.

"He was much more a salesman," said Bruce M. Belzowski, an associate director at the University of Michigan's Transportation Research Institute. "When he went before Congress, he was excited and emotional about what he was going to do. . . . What a great show for just a $1.5 billion loan."

2. How will the automakers demonstrate their accountability?

Congress wants to see that the auto industry is willing to make sacrifices if it accepts government aid. Some lawmakers cringed when Ford chief executive Alan R. Mulally refused to cut his salary to $1 as Iacocca did, saying, "I think I'm okay where I am." And flying three separate private jets to Washington to testify enraged Rep. Gary L. Ackerman (D-N.Y.): "I mean, couldn't you all have downgraded to first class or jet-pooled or something to get here? It could have at least sent a message that you do get it."

Pelosi and Reid demand that the companies ban the payment of dividends and "excessive executive compensation" if they take government money. They want the automakers to report regularly on their progress and spell out how they will safeguard taxpayer investments -- including provisions that the loans be "immediately callable" if certain benchmarks are not met.

The United Auto Workers will probably need to make some "visible indication of sacrifice" to push forward the automakers' plans, said Dave Cole, chairman of the Center for Automotive Research. A special program that pays workers at idle plants may be the first on the chopping block. "Symbolically, it's something everyone hates," Cole said.

Corporate turnaround veteran Wilbur Ross suggested consolidating Chrysler and GM to show the government that the industry is willing to make dramatic cuts. "They have a tremendous amount of duplication at a very high price," he said.

Both Ford and GM made some headway yesterday, announcing production cuts at several plants to better align with demand. GM is preparing to give back two of its leased corporate jets, and Ford is exploring the sale of its five planes.

3. Is the industry viable?

This is perhaps the most important question facing Congress. Pelosi and Reid want the companies to explain how they intend to remain solvent while retooling to become global leaders in the production of energy-efficient vehicles.

GM chairman and chief executive G. Richard Wagoner Jr. attempted several times in his recent testimony to convey his company's commitment to make cars more fuel efficient.

"We have 20 models that get more than 30 miles per gallon highway, more than twice any other manufacturer today," Wagoner said. "We have six hybrid models. We'll offer three more next year. We're the global leader in biofuel vehicles. And obviously we have a significant commitment to the electric vehicle with cars like the Volt and fuel cell."

But lawmakers want further assurances. In their letter, Pelosi and Reid asked the automakers to demonstrate their ability to meet new fuel standards of at least 35 miles per gallon by 2020.

This request may be the easiest to comply with.

"All these companies have very detailed plans and strategies in place. It's there. It's on paper. It's in action," said Laurie Harbour-Felax, a longtime industry analyst.

GM is making strides to streamline its manufacturing, much like Toyota's production system, she said. All three companies have plans to roll out fuel-efficient and hybrid electric vehicles in two years.

Staff writer Dan Eggen contributed to this report.