Dec. 11 (Bloomberg) -- The debate over the automaker bailout in Congress has become a race against the clock and the companies’ dwindling cash.

The U.S. House voted 237-170 late yesterday to approve emergency loans for General Motors Corp. and Chrysler LLC, shifting the focus to the Senate, where Republican opposition threatens to delay or kill the legislation. Senate Republican Leader Mitch McConnell said he is against the bill because it “isn’t nearly tough enough.” The White House today issued a warning.

“We believe the economy is in such a weakened state right now that adding another possible loss of 1 million jobs is just something” it cannot “sustain at the moment,” White House spokeswoman Dana Perino told reporters today.

President-elect Barack Obama also urged Congress to act, saying today that the collapse of U.S. automakers would have a “devastating ripple effect throughout our economy.”

Pressure is mounting on GM as a small number of partsmakers ask for payments in advance, people familiar with the matter said. GM, which typically pays vendors about 45 days after getting an invoice, has said it won’t have enough money to pay its bills by month’s end without federal aid.

GM has rejected the requests for upfront payments, which so far have come from a fraction of its 3,600 suppliers, said the people, who asked not to be identified because the discussions are private.

A Deadline

Democratic leaders and the Bush administration are trying to beat a deadline to save the companies and the jobs dependent on the industry before Detroit-based GM and Chrysler burn through their remaining cash. GM has said it needs $4 billion this month, the same amount in January and a total of $10 billion to keep going through March 31.

“Without this bridge, we’re going to fall into the biggest calamity this country has known since the Great Depression,” said Representative John Dingell, a Democrat from Michigan, the carmakers’ home state. “A terrible disaster looms.”

Senate Majority Leader Harry Reid, a Nevada Democrat, said he’s working on an agreement that would allow the Senate to consider the House legislation, a Senate version and a Republican alternative. He said that if no agreement is reached the Senate will have to give up.

“If the Republicans want to have a better bill then they should offer an alternative and I invite them to do that,” Reid said.

2.5 million

Job losses would total 2.5 million to 3.5 million from an automaker failure in 2009, including 1.4 million people in industries not directly tied to manufacturing, according to a Nov. 4 report from the Center for Automotive Research, which conducts studies for government agencies and companies.

Federal, state and local governments would lose $108.1 billion in taxes over three years in the event of a 50 percent reduction in U.S. automaker operations, representing the failure of one or more domestic automakers, the Ann Arbor, Michigan-based group said.

“We should not go home and do nothing,” Republican Senator David Vitter of Louisiana said today in a Bloomberg Television interview. “We should do the right thing, which is to put the plan together with taxpayer help, but that demands a restructuring plan now,” said Vitter, who had threatened to use procedural methods to halt a vote.

House Speaker Nancy Pelosi tossed a challenge to senators, saying on Bloomberg Television that she wouldn’t bring her chamber back for further action if the Senate passed a different version of the plan.

Restructuring Deadline

The legislation would let GM and Chrysler draw on $14 billion of loans to keep operating while they develop restructuring plans required by March 31. Without the aid, the two companies would likely have to declare bankruptcy by year’s end. Ford Motor Co. has said it doesn’t need emergency aid.

Suppliers’ payment requests to GM began in the last several weeks and haven’t disrupted vehicle production, one person familiar with the matter said.

The people wouldn’t say how many partsmakers had made the requests, nor would they identify the companies. No suppliers have announced that they’re requiring payment in advance.

“Despite the current economic challenges, GM remains committed to maintaining a strong, open relationship with our suppliers,” said a spokesman, Dan Flores, who declined to give details on supplier discussions. “GM remains focused on maintaining payment terms and being a prompt payer.”

Monthly Bills

Paying monthly bills at GM requires a minimum of $11 billion, and there was $16.2 billion available at the end of September, GM has said.

Chrysler had $6.1 billion in cash at the end of the third quarter, Chief Executive Officer Robert Nardelli told Congress on Nov. 18. The Auburn Hills, Michigan-based company needs at least $3 billion on hand to operate, he said.

The automakers could still be forced into bankruptcy under the legislation if the so-called car czar, an official to be appointed by President George W. Bush to oversee the loan program, decides their restructuring plans are insufficient.

Republicans said yesterday the House measure wouldn’t give the czar enough authority to order cost cuts and other changes. They argued that only a restructuring under bankruptcy protection can make the companies more competitive.

“The car czar doesn’t have as much authority as he really needs,” said Senator Robert Bennett, a Utah Republican. “He needs the capacity of the master in bankruptcy to force things to happen.”

Republicans are also concerned about House bill language that requires that auto restructuring plans comply with “applicable fuel efficiency and emission requirements.” That might force the companies to follow state emission standards such as California’s that automakers oppose.

Veto Power

The czar would have the power to veto automaker expenditures over $100 million. Car companies that take loans would have to limit pay and ban bonuses for their 25 most highly paid executives. They also would be barred from owning or leasing passenger aircraft or paying dividends to shareholders.

Taxpayers would receive stock warrants equal to 20 percent of the aid. The U.S. may end up holding a large stake in the automakers based on that provision.

GM fell 33 cents, or 7.1 percent, to $4.27 at 11:35 a.m. in New York Stock Exchange composite trading, while Ford slid 15 cents, or 4.6 percent, to $3.10.

Clear a Hurdle

Senate Republicans emerged from a meeting yesterday with Vice President Dick Cheney and White House Chief of Staff Josh Bolten and said the measure doesn’t have enough support to clear a 60-vote legislative hurdle. Democrats control the chamber 50- 49.

“It has minimal, very little support in our caucus,” Tennessee Republican Bob Corker said after the meeting. He said Cheney and Bolten gave a “non-compelling” presentation in favor of the plan.

Deputy White House Chief of Staff Joel Kaplan today said the Bush administration is “going to try like heck to get the votes” from rebellious Senate Republicans. Kaplan said he would be on the phone lobbying this morning.

Republicans who oppose the measure said Congress should stay in session next week to allow time for changes. Any revisions in the legislation by the Senate would require the House to reconvene.

During last night’s debate, Massachusetts Democrat Barney Frank warned colleagues that further House action is unlikely. “This is the last train out of the legislative station this year,” he said.

Pelosi said on Bloomberg Television, “You never say never, but the fact is, I think it’s important for the Senate to know that this is a strong bipartisan bill.”

To contact the reporters on this story: Nicholas Johnston in Washington at njohnston3@bloomberg.net; John Hughes in Washington at Jhughes5@bloomberg.net

Last Updated: December 11, 2008 11:39 EST