The House has passed the bailout for the ailing auto industry, but the big three still have a ways to go before they receive aid to stay afloat, according to WIFR. However, it`s not all good news, the legislation may stall in the Senate, where Republicans say they don`t like many aspects of the plan.
Detroit`s bailout is far from a sure bet. Democrats and the White House found common ground on how the loans should work, and it passed a first test vote in the House this afternoon, but there`s still a way to go. Senate Republicans strongly oppose the bill and may be able to block it.
"There is no political solution to the problems the American automobile companies are facing", said Senator Jim Demint.
The plan would make up to 14-billion dollars in low interest loans available to G-M and Chrysler. Both companies will have to show Congress a plan to restructure by the end of March. If that doesn`t happen they would have to pay back the loans in 30-days. Overseeing it all -- a car czar, appointed by President Bush. That person would monitor the progress of the auto companies as they cut costs.
White House Deputy Chief of Staff, Joel Kaplan says,"This is going to take a couple months of sitting down, banging heads, getting everybody in a room, and saying what are you putting on the table to make this firm viable".
Yet, Republican leaders are standing firm. "Republicans will not allow taxpayers to subsidize failure," said Senator Mitch McConnel.
If the bailout does become law GM and Chrysler will see their loan money arrive within days. If it doesn`t, GM says it will run out of cash by the end of the month.
