The Detroit’s big automakers have been trying to persuade Congress to speed up funding for $25 billion in subsidized loans to help retool their old plants. Before the Congress adjourns on September 30, the Detroit’s lobbyist wants the funding approved. The industry’s deteriorating state; they say they need an extra $25 billion and all to be lent at low rates of 5%.

The team flew in from Detroit and Washington and intent on using the conventions myriad reception, lunches, parties, and meetings to make the case for the loan program to as many members of Congress. Ziad S. Ojakli group vice-president for government and community relation at Ford Motor says “This issue is white hot” and “We are focusing on it like a laser.”

According to Greg Martin the General Motors’ Washington spokesman, the engineering and plant-retooling costs required to meet those standards will run to some $100 billion. Congress agreed to provide low-cost loans but has not approved the funds. Detroit needs fast access to cheap capital or the industry’s woes will deepen said Ojakli. He argues that it is critical to the U.S. to keep auto manufacturing alive as it is to support the country’s financial system with aid to troubled banks.

The White House said it was in discussions about a proposal to give the auto industry $25 billion in government-issued low-cost loans and a sign that automakers may be making progress in their effort to get financial assistance.

Dana Perino the White House spokeswoman said “it’s something we’re aware of and we’re talking to the members of Congress and also the people in the auto industry, and thinking about what they might think would be required from their perspective.” Dana Perino said she was not prepared to say what funding amount “the White House would or would not support.” She also said the White House may say whether it supports the proposal in the next day or two.

Energy bill that was signed into law by President Bush included a provision to provide $25 billion in direct loans to automakers but the bill didn’t allocate any funding and it would cost $3.75 billion to guarantee that money. Detroit’s automakers and the United Auto Workers argue a $50 billion package may be necessary and which would cost $7.5 billion to guarantee. Automakers could use the money to retool plants to build advanced technology vehicles that were at least 20 percent more fuel-efficient than the minimum required

Obama is running advertisements tweaking McCain’s support of the smaller package and Michigan is an important state in the presidential election. Barack Obama is the Democratic presidential nominee that has endorsed the $50 billion package and while his Republican rival John McCain endorsed the $25 billion package.

Rick Wagoner, Alan Mulally and Robert Nardelli the Chief executives of General Motors Corp., Ford Motor Co. and Chrysler LLC, talked and agreed that access to capital is their most critical short-term need during this volatile period of high fuel price and slumping SUV and truck sales. The Detroit’s three automakers are urging Congress to make as much as $35 billion to $40 billion in low-cost loans available during the next two to three years, assure that the companies survive long enough to retool and build a new generation of fuel efficient vehicles. All three companies are hemorrhaging cash and having trouble borrowing. General Motors Corp., Ford and Chrysler last Sunday followed up with phone calls to leaders of Michigan’s congressional delegation including U.S. Sens. Debbie Stabenow and Carl Levin, plus Reps. John Dingell and Sander Levin. Monday, Democratic presidential candidate Barack Obama proposed $4 billion to help automakers in Detroit to build the cars of the future. Stabenow told that some of the money would go to battery research; some could be used to help leverage loans of more than $10 billion for retooling plants.

General Motors reported a second-quarter loss of $15.5 billion Friday and a week after Ford posted an $8.7 billion loss for the same period. Chrysler failed to renew all of its $30 billion in short term debt, coming up $6 billion short after a month of negotiation with banks. Though Michigan’s two senators and most influential House members are Democrats, they want to mount a bipartisan campaign to help the industry, just as Washington has been quick to rescue Bear Stearns, Fannie Mae and Freddie Mac from financial collapse.