WASHINGTON, Dec. 5 -- Congressional Democrats said Friday they have agreed on a plan for short-term loans that one lawmaker said would carry U. S. automakers "well into" next year.

Congressional leaders said they expected to hold votes on the legislation during a special session next week, The New York Times reported.

Rep. Barney Frank, D-Mass. -- chairman of the House Financial Services Committee -- told NBC News Friday night the plan involves using funds from a $25 billion loan that has already authorized for technology upgrades, to allow automakers to meet cash flow needs in the short term.

"What we believe is that $25 billion will get us well into the next year," he said.

Washington  - US legislators have proven reluctant to provide the ailing car industry with the money it needs to survive, despite promises by executives to retool for the modern era and warnings of economic "disaster" if any of Detroit's Big Three declare bankruptcy.

It is a sign of just how deep a hole the carmakers find themselves in. Despite record job losses and a deepening economic recession, the government and lawmakers were not prepared to put taxpayer funds at risk for automakers that seemed doomed to fail regardless.

WASHINGTON, Dec. 5  -- Participants in a bailout hearing Friday debated whether the Big Three U. S. automakers should seek bankruptcy protection before accepting federal aid.

Edward Altman, a New York University finance professor, advocated Chapter 11 bankruptcy protection for General Motors Corp., arguing before the House Financial Services Committee that the troubled automaker would not survive unless it became a debtor in protection.

Washington  - Congressional leaders will spend the weekend seeking a solution to a stalemate over how to help the US automotive industry survive the economic recession.

A second day of hearings with car executives ended Friday with no apparent agreement on the industry's request for 34 billion dollars in federal aid.

President George W Bush urged legislators to put a bill together by next week amid warnings that General Motors Corp, the world's largest carmaker, may not last beyond this year without help from the government.

Congressional leaders made no such promises, insisting they would only bring a bail-out bill to the floor of the Senate or House of Representatives if it had enough votes to be approved.

TOKYO, Dec. 5  -- The Honda Motor Co. Friday announced it has withdrawn its sponsorship on the Formula One auto racing circuit because of "widespread economic uncertainties."

Honda's chief executive officer, Takeo Fukui, said at a Tokyo news conference Friday the company -- the world's largest automaker -- experienced a 34 percent sales drop in November from last year, and that its F1 racing team is for sale.

Washington  - The last time the United States' three top automotive executives travelled from Detroit to Washington to plea for a federal bail-out, they flew each in their own corporate jets.

It was a public relations nightmare. One legislator noted the "delicious irony" of living the high life while asking for billions in emergency federal assistance.

Taking their case before Congress a second time on Thursday - seeking 34 billion dollars to help stave off bankruptcy - it appeared the group had learned its lesson.

"I'm proud to say that I drove a hybrid here from Detroit, and it performed - the technology performed extremely well," said Rob Nardelli, Chrysler chief executive.