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U.S. House of Representatives approves auto bailout plan
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This file photo shows new trucks are displayed for sale at a Ford dealership in Encinitas, California November 11, 2008. (Xinhua/Reuters Photo)
The U.S. House of Representatives on Wednesday night approved a 14-billion-dollar auto bailout plan to save the country's struggling auto industry from bankruptcy.
The bill, which signifies the most extensive government intervention in the U.S. industry in years, still needs to go to the Senate for approval. However, some Republican Senators have voiced strong opposition, leaving the bill's passing prospects quite uncertain.
The bailout plan includes the extension of taxpayer-funded loans or lines of credit to the so-called Detroit Three, namely General Motors Corp., Ford Motor Co. and Chrysler LLC, and the appointment of a government "car czar" who will oversee the rescue package and a major auto industry restructuring aimed at innovation and commercial viability.
Among the three auto giants, GM and Chrysler, which are in urgent need of short-term government loans to evade the imminent danger of bankruptcy, are expected to receive the money within days after the bill's passage. Ford, which said it currently has sufficient cash but wants to get a line of credit in case its finances worsen, will also become eligible for federal aid.
The House approved the legislation 237-170, just hours after the Congressional Democrats and the White House reached a deal on the draft package following two days of painstaking negotiations.
Source: Xinhua
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