U.S. launches bailout plan for automakers

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Source: CCTV.com | 11-18-2008 09:20

The White House and congressional Democrats have launched a post-election showdown over how to rescue US automakers.

Millions of jobs, more than a century of iconic brands, and even economic confidence are riding on the outcome.

The White House and congressional Democrats have launched a post-election showdown over how to  rescue US automakers.(CCTV.com)

The Bush administration and many lawmakers agree that up to 25 billion US dollars in loans should be extended to General Motors Corp, Ford Motor Co and Chrysler LLC.

But there are key differences on the details. Democratic leaders plan to forge ahead with an industry-backed proposal that would offer 25 billion US dollars from the Treasury Department's 700 billion US dollars financial industry rescue fund.

The White House wants Congress to amend a law passed in September. That law made a separate 25 billion US dollars in financing available to Detroit for retooling factories to make more fuel efficient cars.

Congress faces a steep hill in its attempt to get an auto bailout - or anything consequential accomplished - before it adjourns and a new Congress takes over in January.