November 22, 2008 Dodd, Frank lead auto bailout effort Play video

(Brian Burnell, NECN) - Congress is going to take another crack at a bailout bill for the auto industry and two New England legislators will lead the way. Senator Chris Dodd of Connecticut and representative Barney Frank of Massachusetts are starting work on a new bill that supporters hope can be passed early next month.

Sen. Chris Dodd, D-Connecticut: We can not lose the automobile industry in America. That can not happen.

Strong words from Connecticut Senator Chris Dodd after he met with several car dealers and representatives from organized labor. Dodd was critical of the heads of the big three auto makers who flew to Washington in private jets to ask congress for 25-billion dollars in loans this week. That effort failed but Dodd says he and his colleagues will try again.

Sen. Chris Dodd, D-Connecticut: Along with Barney Frank in Massachusetts I've been asked over the next 12 days to try and put together a package that would warrant and receive the support of members of congress and, hopefully, the President.

Dodd says they will try to craft and pass a bill by December 8th and adds it could cost less than the 25-billion dollars that's been talked about. He says it would be helpful if the president elect would add his support to the task.

Sen. Chris Dodd, D-Connecticut: I think the Obama team has to step up. This is not a time when you wait until January 20th. We need to hear from him. President-elect but I think in the minds of

There is a car show underway in Hartford and the head of the state dealers association says getting people back to the showrooms, buying cars is key. There are two things he would like to see in the bill.

Jim Fleming, CT Automotive Retailers Association: We would like to see interest on a loan... a car loan, for example... deductible on the income tax. Also your state sales tax that you pay. If that's deductible on your federal income tax form that's going to drive consumers into the showrooms right now.

For Dodd this is a crucial time for a crucial industry.

Sen. Chris Dodd, D-Connecticut: We lose the automobile industry we've lost manufacturing in America. We can not lose this industry and claim America has a manufacturing base.

Brian Burnell, NECN: The early December deadline for the new bailout bill is important. Dodd says the big three automakers have some big obligations they must pay on December 2nd. He says those creditors could be held off for a week or so but real progress has to be made for that to happen.