US lawmakers are now mulling the execution of a possible bailout package for the ailing US auto companies, after the disastrous unemployment report gave a taste of things to come if they allowed Detroit's Big Three to collapse.

Reports said that democrats in the US Senate and House of Representatives have said that Congress could consider legislation next week to provide financial assistance to the troubled US auto companies. However, as of now, there are no definite plans, though senate majority leader Harry Reid, and house financial services chairman Barney Frank have bills to be debated.

In a statement, Reid called on Congress to take steps to keep the auto makers solvent while ensuring "strong oversight" of the auto industry. House speaker Nancy Pelosi and Reid were reported to be polling colleagues to find out if Congress has the necessary political will to rescue General Motors , Ford and Chrysler.

Meanwhile, for a second day at, hearings at Capitol Hill saw chief executives of the Big Three pitch for $34 billion in government loans before the House Financial Services Committee. Reports suggested that comments from the three CEOs, Rick Wagoner of GM, Alan Mylally of Ford, and Robert Nardelli of Chrysler were basically echos from the first day's hearings before the senate banking committee.

The hearings come just after the Labour department issued the latest payrolls report that revealed a loss of 533,000 jobs in November, the worst in 34 years since 1974. That report gave a much wanted impetus to the cause of the auto makers.

Fighting alongside his adversaries, United Auto Workers President Ron Gettelfinger was also at the hearings that see the three auto companies request for money that hinge on the threat of the potentially catastrophic scenario of bankruptcy painted by the three auto majors.

Two weeks ago, when the CEOs first came to ask for the bailout, they had requested a rescue package of $25 billion, which has since grown to $34 billion. Economists were reported saying that this could well be the hook, with the line and sinker still to come.

Chrysler has already hired Jones Day, a well known law firm, as its bankruptcy counsel in case its bid to raise a bailout goes unsuccessful, and it is unable to find financing anywhere else, according to a report by the Wall Street Journal.

Some lawmakers think a bridge loan to let the car companies tide over till the Obama administration takes over is the way forward, since it will allow the development of a more comprehensive and long term plan to deal with the problems ailing the US auto industry.

GM and Chrysler were requesting immediate loans to ward off possible failure, while Ford needs a $9 billion credit line that it would dip into later, if necessary. GM is looking for $12 billion in loans, with $4 billion of those being immediate in nature, in addition to a $6 billion credit line. Chrysler wants $7 billion, with $4 billion to run operations through March. For GM to survive till March, it would need to burn $10 billion, according to reports that cited GM CEO Rick Wagoner. Ford CEO Alan Mulally said his company does not immediately need funds, but needs the credit line that it would use, if necessary.

General Motors in the mean time announced layoffs that will impact around 2,000 workers at its factories early next year. The companies sales have continued their decline, with its car and light truck sales falling 41 per cent last month as compared to a year ago. Sales of Ford also dropped 31per cent, while those of Chrysler sales plummeted 47 per cent. The decline is being attributed to consumers postponing purchase decisions because of tighter credit, falling values in the real estate market, and rising unemployment, evident from Friday's figures released b the Labour Department, which showed employers cut 533,000 jobs in November. The US unemployment rate climbed up to 6.7 per cent.

While Rep. Barney Frank had urged the White House just ahead of the weekend to allocate money from the $700 billion bank bailout program to assist Detroit, US President George W Bush showed no signs of inclination to entertain the idea. He said that money was intended for the financial sector alone, and instead urged Congress to modify a $25 billion Energy Department loan for making more fuel-efficient cars, as a bailout remedy. That approach does not cut the ice with Democrats.

Overall, the bailout, despite the urgency and impetus to the problem provided by the US unemployment data, remains questionable.