Democrats' bailout of auto industry a 'travesty'

At least half a dozen Republican senators have vowed to fight the Democrats' bailout of the auto industry, calling it a "travesty" that would only "delay the funeral."

The lawmakers are working on alternative legislation that would require U.S. auto companies to fundamentally restructure before any federal government money is forthcoming:

"If we don't have a forced restructuring plan in place, many of us don't believe that American car companies will come out of this in a competitive position, and the taxpayers' money will be wasted at that point," said Sen. John Ensign, R-Nev.

Ensign was joined by Republican Senators Coburn, DeMint, Shelby, Vitter, and Corker:

"This doesn't fix the problem, it only exacerbates the problem in the long term," Coburn said.

Watch the following MSNBC video clip:

An agreement between Congressional Democrats and the White House would provide up to $14 billion in funding for General Motors Corp. (GM) and Chrysler. Ford hasn't asked for an emergency loan, but supports a bailout of Chrysler and GM.

But Republicans weren't included in the negotiations leaving open the possibility of strong opposition when the bailout comes to a vote:

"It will keep the industry dependent on taxpayer money instead of giving auto workers the security of a viable industry that is back on its feet and ready to compete," House Minority Leader John Boehner, R-Ohio, said in outlining House Republicans' opposition to the rescue plan.

The Republicans said they would be in favor of the companies going through a Chapter 11 bankruptcy reorganization. They also said the federal government could provide guarantees on car warranties to give potential buyers confidence while the companies are in bankruptcy.

House Republicans have proposed an alternative to the Democrats' bailout. The Republican plan - the American Automotive Reorganization and Recovery Plan - is designed to help the American car makers without using $15 Billion of our money to bailout the industry.