A $14 billion rescue package for the nation’s imperiled auto industry sped to approval in the U.S. House Wednesday night, but the emergency bailout was still in jeopardy from Republicans who were setting out roadblocks in the Senate.
Democrats and the Bush White House hoped for a Senate vote as early as Thursday and enactment by week’s end. They argued that the loans authorized by the measure were needed to stave off disaster for the auto industry — and a crushing further blow to the reeling national economy.
The legislation, approved 237-170 by the House, would provide money within days to cash-starved General Motors Corp. and Chrysler LLC. Ford Motor Co., which has said it has enough to stay afloat, would also be eligible for federal aid.
Republicans were preparing a strong fight against the aid plan in the Senate, not only taking on the Democrats but standing in open revolt against their party’s lame-duck president on the measure.
The Republicans want to force the companies into bankruptcy or mandate hefty concessions from autoworkers and creditors as a condition of any federal aid. They also oppose an environmental mandate that House Democrats insisted on including in the measure.
House Speaker Nancy Pelosi said it represented “tough love” for U.S. auto companies, and “giving a chance — this one more chance — to this great industry.”
The White House, struggling to sell the package to congressional Republicans, said earlier that a carmaker bankruptcy could be fatal to the auto industry and have a devastating impact on workers, families and the economy.
“We believe the legislation developed in recent days is an effective and responsible approach to deal with troubled automakers and ensure the necessary restructuring occurs,” said Dana Perino, the White House press secretary.
(Source: Associated Press)
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3 Responses
The automotive industry and its union have done their share. They made the appropriate campaign contributions (heaven forbid they be called bribes), they delivered votes. It would be nice if they made high quality, affordable and desirable cars, like the foreign companies do in their American factories with American workers, but that’s asking too much. In objecting to GM, Ford and Chrysler raiding the Treasury, the Republicans have finally gotten their act together. In Capitalism, if you make a bad product and no buys it, you go bankrupt.
In all fairness, I agree wtih akuperma on this one.
And with their demise yet another US manufactured good will be replaced by foreign products. If this takes down unions, it would be worth it. But I think that police/fire/EMT services would have to go bankrupt for that to happen.