Nov. 11 (Bloomberg) -- U.S. House Speaker Nancy Pelosi said she wants ``immediate action'' to give automakers additional aid as shares of General Motors Corp. hit their lowest level since 1943.

The failure of ``one or more of the major American automobile manufacturers'' would have a ``devastating impact on our economy,'' Pelosi said in a statement e-mailed to reporters.

Pelosi said any aid to the automakers would come with conditions. She didn't specify the level of assistance she supports, but said it should come from the $700 billion Congress authorized the Treasury to use to help stabilize the financial services industry. Pelosi said she is tapping House Financial Services Committee Chairman Barney Frank to write the legislation that may be considered as early as next week.

``Emergency assistance to the automobile industry would be conditioned on executive-compensation restrictions, a prohibition on golden parachutes, rigorous independent oversight, and other taxpayer protections to ensure that any companies that benefit from this assistance - and not the taxpayers - bear the full burden of repaying any costs that are incurred,'' Pelosi said.

Pelosi's call for federal aid for automakers still faces obstacles from the U.S. Senate and the White House, which must approve any measure. It comes as shares of GM, the biggest U.S. automaker, reached a more than six-decade low today. The company said last week it may run out of operating cash as soon as year's end.

GM had $16.2 billion on hand as of Sept. 30, down from $21 billion at the end of June, and needs at least $11 billion to pay its monthly bills.

`Urgent Action'

``We appreciate the speaker's call for urgent action,'' GM said in a statement. ``We are ready to work with Congress and the administration to secure the immediate support we need to bridge the current economic crisis.''

Ford Motor Co. said in a statement that it applauded the efforts of Pelosi and Senate Majority Leader Harry Reid to help the industry. Earlier this fall, Congress approved $25 billion in low-interest loans for the industry.

``We still have the slimmest of majorities in the Senate,'' Reid said in a statement. ``This will only get done if President Bush and Senate Republicans work with us in a bipartisan fashion, and I am confident they will do what is right for the economy.''

Don Stewart, a spokesman for Senate Minority Leader Mitch McConnell, said McConnell is reviewing Pelosi's plan and did not have immediate comment.

Shelby's Opposition

At least one Senate Republican signaled his opposition to the plan.

``The financial situation facing the Big Three is not a national problem, but their problem,'' Richard Shelby of Alabama, the top Republican on the Senate Banking Committee, said in a statement. ``I do not support the use of U.S. taxpayer dollars to reward the mismanagement of Detroit-based auto manufacturers in such a way that allows them to continue and compound their ongoing mistakes.''

The effort to use some of the $700 billion in bailout money may not succeed before the end of President George W. Bush's term on Jan. 20 because his administration has resisted using the funds for carmakers, said Clint Currie, transportation analyst for Stanford Group Co. in Washington. Multiple congressional efforts may be needed, and success may not occur until after President-elect Barack Obama takes office, he said.

`Not So Much'

``Pelosi and Reid and the incoming administration wants to help them, while the current administration, not so much,'' Currie said.

The Bush administration is waiting to see the details of Pelosi's proposal before reacting to it, White House spokesman Tony Fratto said.

The bailout plan is currently being used ``consistent with the law and congressional intent,'' Fratto said. ``If Congress wants to change the law, we'll see how they intend to do it.''

``It's strange that congressional Democrats would choose to ignore the $25 billion program they actually created to assist the automakers,'' Fratto said. ``That would be a better place to start.''

At a White House meeting yesterday, Obama discussed the urgency for aid to U.S. automakers with Bush, according to aides to the president-elect.

Ford fell 13 cents, or 6.7 percent, to $1.80 at 4:15 p.m. in New York Stock Exchange composite trading. GM fell 44 cents, or 13.1 percent, to $2.92.

Pelosi was among the lawmakers who met last week with the chief executives of GM, Ford and Chrysler LLC.

The three companies are seeking an additional $50 billion in federal loans to help them weather the worst auto market in 25 years, according to a person familiar with the matter.

To contact the reporters on this story: Laura Litvan in Washington at llitvan@bloomberg.net; John Hughes in Washington at Jhughes5@bloomberg.net.

Last Updated: November 11, 2008 18:15 EST