U.S. House Speaker Nancy Pelosi called for "emergency and limited financial assistance" for the battered auto industry on Tuesday and urged the outgoing government to join lawmakers in reaching a quick compromise.

Four days after dismal financial reports from General Motors Corp. and Ford Motor Co., Pelosi backed legislation to make the automakers eligible for help under the $700-billion bailout measure that cleared Congress in October.

In a written statement, the California Democrat said the aid was needed "in order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry."

"Congress and the [President George W.] Bush administration must take immediate action," she added. Administration officials have concluded that the bailout bill that passed earlier does not permit loans to the auto industry, but lawmakers are expected to return to the Capitol for a brief post-election session beginning next week.

Senate Majority Leader Harry Reid also supports help for the industry, and issued a statement saying Democrats were "determined to pass legislation that will save the jobs of millions" as part of a post-election session.

"This will only get done if President Bush and Senate Republicans work with us in a bipartisan fashion, and I am confident they will do what is right for our economy," he said.

The plight of the industry has drawn attention from the White House and the incoming Obama administration in recent days, as well as among lawmakers.

The White House Tuesday said it was open to considering any proposals from Congress to accelerate loans to the ailing U.S. auto industry from funds already appropriated.

"We're open to ideas from Congress to accelerate funds they've already appropriated in the auto loan program — as long as funding will continue to go to viable firms and with strong taxpayer protections," White House spokesman Tony Fratto said.

Last week, President-elect Barack Obama prodded the Bush administration to do more to help the industry, and on Monday, aides said he raised the issue with Bush in an Oval Office conversation meant to underscore a smooth transition of power.

Officials familiar with the conversation said the president replied he was open to the idea.

Before adjourning for the election, Congress passed legislation providing for $25 billion US in government-backed loans to the automakers to encourage them to retool their factories to make more efficient vehicles.

Since then, executives from GM, Ford and Chrysler LLC, along with officials in the United Autoworkers union, have called for more than that to avert a possible collapse of one of the nation's most basic industries, including a $25-billion loan to help keep the companies afloat and $25 billion more to help cover future health-care payments for about 780,000 retirees and their dependents.

GM and Ford reported last week that they spent down their cash reserves by a combined $14.6 billion in the past three months. Ford said it would slash more than 2,000 white collar jobs.

Pelosi said she has asked Representative Barney Frank (D-Mass.), chairman of the House Financial Services Committee, to draft legislation. A companion effort is also under way in the Senate.

With files from Reuters