Nov. 14 (Bloomberg) -- A $25 billion bailout for automakers faces opposition from Republican leaders in Congress, complicating prospects for its approval in coming weeks.

House Republican leader John Boehner, Richard Shelby, the top Republican on the Senate Banking Committee, and Alabama Representative Spencer Bachus, have all criticized aspects of the aid package being crafted by Democrats in the House and Senate.

``I don't know of a single Republican who is willing to support'' the auto bailout, Democrat Christopher Dodd, chairman of the Senate Banking Committee, said yesterday, adding that he would be careful about bringing up any measure that might fail.

General Motors Corp., Ford Motor Co. and Chrysler LLC would receive $25 billion in loans out of a $700 billion financial bailout package approved earlier this year under the legislation, which Representative Barney Frank of Massachusetts and Senator Carl Levin of Michigan are writing. The Bush administration opposes using those funds for the auto companies.

Democrats have a 51-49 majority in the Senate, and their gains from the Nov. 4 election won't take effect until January. The narrow division, combined with the ability of outgoing President George W. Bush to veto any bill give Republicans a better opportunity to block auto aid legislation than when Democrat Barack Obama takes office Jan 20.

It is ``highly uncertain'' Congress will pass a bailout package this year, Goldman Sachs Group Inc. analyst Patrick Archambault wrote in a research note yesterday.

Frank's Bill

Frank said his bill, to be unveiled Nov. 18, would aid automakers with funds from the financial rescue package. Chief executives of GM, Ford and Chrysler, and the United Auto Workers president, have been invited to testify at a Nov. 19 hearing, said Frank's spokesman, Steve Adamske.

Congress should come up with aid for automakers outside of the money already approved for the financial rescue, Treasury Secretary Hank Paulson said in a Bloomberg Television interview.

Obama is pushing Congress to approve this year as much as $50 billion in aid for automakers and appoint a czar or board to oversee the companies, people familiar with the matter said.

Obama is resigning his Senate seat effective Nov. 16, which will further narrow Democrats' majority. Democrats would likely need 60 votes to get the measure approved.

Still, not everyone is pessimistic about prospects for the legislation.

``There will be some support on the Republican side'' for the loan package, Charles Schumer, a New York Democrat, said at a news conference yesterday. ``Whether there will be enough support to override a presidential veto, that I don't know.''

Boehner's Stance

Boehner said he opposes the aid and that any funds should be conditioned on plans by the companies to strengthen their finances.

``Spending billions of additional federal tax dollars with no promises to reform the root causes crippling automakers' competitiveness around the world is neither fair to taxpayers nor sound fiscal policy,'' Boehner said in a statement yesterday.

Bachus, the top Republican on Frank's Financial Services Committee, said aid shouldn't be approved unless companies can pay it back by taking steps such as renegotiating labor contracts.

Shelby, who also opposed the $700 billion bailout for the financial industry, said he would oppose this package.

``The financial situation facing the Big Three is not a national problem, but their problem,'' Shelby said in a statement this week. ``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.''

Charles Grassley, the top Republican on the Senate Finance Committee, wrote the executives of the auto companies a letter yesterday, urging them to emulate the example of Lee Iacocca, the former head of Chrysler, and cut their salaries to $1 a year.

The chief executives should ``be the first employees of your companies to make a personal sacrifice,'' Grassley wrote. ``Hardworking American taxpayers, including me, expect it.''

To contact the reporter on this story: John Hughes in Washington at Jhughes5@bloomberg.net.

Last Updated: November 14, 2008 07:29 EST