It appears likely that the Democratic hope of enacting a bailout for the auto industry as well as a larger stimulus package during the lame duck session will wither on the vine. From the New York Times:

The prospects of a government rescue for the foundering American automakers dwindled Thursday as Democratic Congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck session next week.
At the same time, hope among many Democrats on Capitol Hill for an aggressive economic stimulus measure all but evaporated. Democratic leaders have been calling for a package that would include help for the auto companies as well as new spending on public works projects, an extension of jobless benefits, increased food stamps and aid to states for rising Medicaid expenses.

There is talk of freeing the earlier $25 billion voted for automakers from the restrictions on use that were attached, and that might attract some Republican support. Short of that it is clear that the Democrats will not be able to derive any Republican support in the Senate for a bill. Republican sentiments were offered by Senator Richard Shelby:

Senator Richard C. Shelby of Alabama, the senior Republican on the banking committee, said he would not support legislation to aid the auto companies and seemed prepared to let one or all of them collapse.

“The financial straits that the Big Three find themselves in is not the product of our current economic downturn, but instead is the legacy of the uncompetitive structure of its manufacturing and labor force,” Mr. Shelby said in a statement. “The financial situation facing the Big Three is not a national problem but their problem.”

President elect Obama is weighing in slightly, calling for loans with oversight, with the possibility of an auto czar to insure that the companies find a way to viability. From the Washington Post:

Top advisers to President-elect Barack Obama are helping to draft an auto industry rescue plan that would bring new government oversight, including the possibility of an auto czar who could ensure the money was being used wisely.

Aides said Obama is also open to an oversight board that would perform the same function as one individual. The proposals come as the estimates of the cost to fix Detroit’s three largest automakers continue to mount.

“Certainly he wouldn’t believe in it being a blank check,” said an Obama adviser, who spoke on condition of anonymity due to not being authorized to speak publicly on the topic. “He wants oversight to be making sure the auto companies have figured out how to become viable, ongoing concerns.”

The President elect recognizes, in theory, the futility of loaning money to concerns who are burning through billions of cash each month. With the current deadlock not likely to be broken the future of the American auto industry will be decided on his watch.