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Gridlock has stalled the President and his successor over the issue of spending tens of billions of dollars to make America's battered auto makers roadworthy again.

Yesterday, both camps were digging in to their separate positions on the issue.

President George W. Bush and president-elect Barack Obama "have policy differences, but that doesn't mean they're not both interested in helping improve the economy for the benefit of American citizens," White House spokeswoman Dana Perino said yesterday.

Mr. Obama and Mr. Bush, the Oval Office's lame-duck occupant, apparently failed yesterday to agree on when or how to structure a big bailout of the auto makers.

Mr. Obama, echoing leading congressional Democrats, wants the Bush administration to funnel already approved funds to car manufacturers. He apparently told Mr. Bush as much during a private, hour-long Oval Office meeting on Monday.

But Mr. Bush wants congressional Democrats to explicitly authorize the tens of billions of dollars the big car makers say they need to avert bankruptcy.

"We have gone as far as we can," Ms. Perino said, referring to the bailout funds already authorized. "If [auto makers] believe that that's not enough for them, they need to continue to work with Democrats, and then we'll see what they can come forward with."

The White House denied reports that it was linking help for the auto makers - which Mr. Obama wants to deliver to save hundreds of thousands of high-paying manufacturing jobs in unionized Democratic strongholds - to winning the next president's backing for Mr. Bush's last free-trade pact, a deal with Colombia, which increasingly protectionist Democrats don't want. They also oppose it because union leaders have been targeted for killings in Colombia.

"In no way did the President suggest that there was a quid pro quo," Ms. Perino said.

Mr. Obama's transition team also denied that any quid pro quo was raised, and discounted reports of any tension with the White House.

But both the President and the man who will replace him were clearly jockeying for advantage behind the public façade of an amicable working visit and the first extended conversation between the two.

Yesterday, aides to Mr. Obama said he wants to name a prominent "czar" to oversee any bailout and transformation of the auto industry.

House of Representatives Speaker Nancy Pelosi warned that the collapse of any of the Big Three car makers would have a "devastating impact."

During his election campaign, Mr. Obama made sweeping promises to save and transform the auto industry. He promised to direct billions in tax credits and subsidies to the industry so "new fuel-efficient cars can be built in the U.S. by American workers rather than overseas ... and [to] ensure that American workers will build the high-demand cars of the future."

But salvaging a domestic industry already eclipsed by Toyota and other foreign manufacturers, especially during a recession, may be politically costly as well as financially expensive.

The Big Three - all of which have extensive operations in Canada - are hemorrhaging cash.

General Motors Corp. may run out of money as early as next month and its stock price is at a half-century low. GM, along with Ford Motor Co., Chrysler LLC and the United Auto Workers have jointly asked for $50-billion from government - half to stave off industry collapse while they retool and half to go to the union's fund for retiree health care.

Democrats want money from the $700-billion bailout package for financial firms to be channelled to the auto industry. The Bush administration says it can't do that because the money was specifically earmarked for financial firms, not industrial giants. Only the $25-billion set aside for loans to develop fuel-efficient cars is available, the current administration says.

"We understand that they're going through a very difficult time," Ms. Perino said. "There's been business decisions they've made over the years that have led to this situation."

Independent analysts say as many as three million U.S. jobs could be lost if the big auto makers collapse, making their rescue a political imperative for the president-elect.

Democratic Senator Carl Levin of Michigan says he will propose legislation for the coming lame-duck session of Congress to free up funds for the auto makers.