WRAPUP 2-US auto aid pleas mount; Treasury says no GM talks
* Governors, CEOS urge government aid to automakers
* Administration focused on speeding $25 bln of loans
* GM/Chrysler merger on hold as aid hopes fade-sources
* Suppliers worried GM-Chrysler merger would cut vehicles
* Ford seeking 'degree of parity' if government aids GM (Adds sources on deal hopes fading)
By David Bailey and David Lawder
DETROIT/WASHINGTON, Oct 30 (Reuters) - Six U.S. governors and a group of chief executives on Thursday urged the Bush administration to aid the embattled auto industry while the White House rebuffed a request for direct support of a merger between GM and Chrysler.
An administration official said the focus instead would be on speeding of $25 billion of low-interest loans for factory retooling, a step the industry's allies say does not go far enough to reverse a deepening industry crisis. [ID:nN30295721]
Three people with direct knowledge of the talks said the deal to merge General Motors Corp (GM.N: Cotización) and Chrysler LLC had hit an impasse after the administration ruled out funding it and any merger would be on hold until after the U.S. presidential election next week. Continuación...