Dec 12, 2008, 10.58 AM | Source: CNBC-TV18
A proposed government bailout for the struggling US auto industry faces uncertainty as a house-approved USD 14 billion plan ran into stiff opposition from the Republican lawmakers in the Senate.
The US Senate failed to reach a compromise to bail out Auto Makers. A Senate aide said that the debate on the bailout legislation is over for this year
Earlier, CNBC-TV-18 reported that a proposed government bailout for the struggling
Meanwhile, negotiations continued late into the night to salvage a USD 14 billion government bailout of the nation's big three carmakers. Officials said the talks centered on possible wage and benefit concessions from the united auto workers union as well as large-scale debt restructuring by General Motors and Chrysler.
Still, the possibility of support for US based auto makers remains open under an alternate proposal from freshman Republican Senator Bob Corker and that would apply tougher standards for automakers.
Corker said that he would propose giving loans to General Motors and Chrysler provided the auto makers cut their debt by two-thirds by mid-March, or else they must file for bankruptcy. Some republicans who have opposed the democrat-led house bailout proposal have expressed support for the corker alternative.
But the house would have to come back and vote again if a Corker-based bill was approved by the Senate. The house and Senate must pass an identical measure to send to President Bush to be signed into law.