Presidential politics in the hard hit economies of the Midwest are becoming crucial for automakers to win $25 billion in government loans as the Wall Street financial crisis swamps Congress.



The industry is racing against the electoral clock to leverage any political clout it might have, especially in the so-called battleground states of Michigan and Ohio. Detroit, the traditional 'heart' of the U.S. auto industry and its iconic brands, lies in Michigan, and automakers account for thousands of jobs there and in Ohio.



Michigan and Ohio carry a combined 37 of the 270 electoral votes needed to win the White House.



'There is not a candidate running for dog catcher or president who is not going to walk through Michigan and Ohio and say 'This has to happen',' said Tim Leuliette, chief executive of Dura Automotive Systems Inc. 'Once the election is over, that could turn into 'It could happen.''



Lawmakers have been planning to take a break from the end of this week until January, but preoccupation with a bailout package for Wall Street could keep them working beyond Friday. There is also the possibility that they will return for a brief 'lameduck session' after the November 4 election.



Michigan and Ohio have been hard hit by the travails of the auto industry, with sales dropping 11 percent this year, and companies cutting production of gas-guzzling trucks and SUVs.



In August, Michigan led the country with an unemployment rate of 8.9 percent, while it was 7.4 percent in Ohio. The national average in August was 6.1 percent.



Chrysler chief executive Robert Nardelli said on Tuesday that the alternative to the loans would be 'gut-wrenching' cost cuts, but he said he was confident in Chrysler's business plan and ability to manage liquidity.