Tennessee Sen. Bob Corker (right, in the driver's seat next to Mark Fields, Ford's president of the Americas), who pushed for tough conditions on the $17.4 billion U.S. government bailout for General Motors and Chrysler, said at the Detroit auto show that he hoped Chrysler would find a merger partner to survive.

"Chrysler probably needs to merge with somebody, not necessarily disappear from the standpoint of existence," said Corker, who added the automaker owned by Cerberus Capital Management was not making the needed investment to remain competitive. He spoke to reporters as he toured the show before meeting with executives for GM, Chrysler and Ford.

Corker, whose home state includes the U.S. headquarters for Japan's Nissan, also said he felt GM's debt load was too heavy and it may not meet the restructuring targets set out under the $13.4 billion loan granted to the company by the Bush administration.

The Republican senator met with GM Chief Operating Officer Fritz Henderson and, during his visit to the GM stand at the show, sat in the Cadillac Converj, a luxury model of the all-electric Chevrolet Volt concept car.

Corker said he loved the Jeep he drove before he came to Congress, though he did not specify which model. Chrysler, which received $4 billion in emergency loans, owns the Jeep brand.

The most contentious issue in the Bush administration's bailout plan is a goal that seeks to bring hourly wages for the U.S. automakers' unionized work force in line with those of Toyota and other Japanese automakers operating nonunion U.S. factories.

The labor give-back provisions were spearheaded by Corker and incorporated into the bailout. A proposal to strip the Corker-inspired labor provisions from the automaker rescue was included in legislation introduced in the House of Representatives last week.

The UAW has said it is open to making some changes to help GM and Chrysler lower costs, but has vowed to try and get the administration of President-elect Barack Obama to amend the giveback targets. Obama, a Democrat, takes office Jan. 20.

GM and Chrysler are under tight deadlines to show progress. The automakers must demonstrate to the government within several weeks that they are lowering costs and making other changes required under the Bush administration's bailout plan.

GM CEO Rick Wagoner has said the automaker could seek further loans from the government at the end of March if the U.S. auto market does not improve. 

Corker also made a point during his tour of saying he had flown a commercial plane to Detroit for his visit. "I came Northwest Airlines and I want you to know it was right on time."

The CEOs for GM, Chrysler and Ford were criticized by lawmakers in November for separately flying company jets instead of less costly commercial planes to Washington as they sought billions in bailout funds from Congress.

(Photo/Reuters)

This post was written by colleague Christiaan Hetzner.

Listening to GM Europe CEO Carl-Peter Forster (right), there is a big side benefit of having the thankless job of running a business in danger of being dragged under by its foundering parent. 
 
For one, you are not publicly humiliated by lawmakers with an ax to grind the next time you try and hit them up for aid.
 
Whereas U.S. congressmen eager to score points with taxpayers were just itching to take turns tag-teaming his boss Rick Wagoner, Forster said he is treated with far more respect and understanding by the German and Swedish governments when he participates in discussions over receiving billions in state loan guarantees. GM is looking to sell its Saab brand in Sweden.
 
Asked at the Detroit auto show whether the talks were considered in Europe to be as controversial as those in Washington, Forster replied: "Interestingly enough, the Europeans take a very, very different approach. Much less hostile, virtually not hostile at all, seeing the automotive industry as a very important industry."
 
GM Europe has a funding requirement peaking this year, in part due to this year's roll-out of the new Opel Astra and Saab 9-5 cars, key models for both brands.
 
 "They (state officials) understand the extraordinary circumstances in Europe -- by the way, the circumstances in the U.S. are even more extraordinary than in Europe. They know how important the industry is for the European economy and particularly for certain member states like Germany, France, Italy, the UK and so on. Absolutely no hostility, very open, understand the situation and try to come up with a solution."
 
Perhaps lawmakers in the more socialist governments across the Atlantic better realize what would happen if Opel or Saab cannot get the loan guarantees needed to access to the European Investment Bank's 16 billion-euro fund for the European auto industry, which is only open to companies with an investment grade rating. 
 
(Photo/Reuters)