$14 Billion Auto Bailout Faces Serious Opposition in Senate
The U.S. House may have approved the Bush administration's $14 billion emergency bailout plan for Detroit's Big Three late Wednesday, however the bill's fate is uncertain as it still needs to win the support of the Senate. And the omens aren't good for the American automakers. On Thursday, Senate Republican leader Mitch McConnell of Kentucky, talked against the bailout plan that would help General Motors, Chrysler LLC and to a lesser extent, Ford Motor Company, survive the economic crunch over the next few months. Mr McConnel labeled the proposal "not nearly tough enough" on the car sector.In order for the measure to advance in the Senate, it has to collect 60 votes. Democrats who support the bill, currently hold a 50 to 49 majority in the Senate. On Wednesday's vote, the House passed the $14 billion loan package relatively easy with 237 votes to 170. The measure was supported by 205 Democrats and 32 Republicans who came from States depending on the auto industry while 150 Republicans and 20 Democrats voted against it.
"Even if we grant these companies would fail without taxpayer help, we would still have to ask ourselves whether the proposals before us achieve the goal that everyone claims to embrace, namely the long-term viability of ailing car companies," McConnell said. "In my view, it does not."
"The best route for long term viability for auto companies may be a rocky one," he added referring to a o bankruptcy solution. "Government help is not the only option. It may not be the best option."
Source: Freep
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