2023 Author: Eric Donovan | [email protected]. Last modified: 2023-05-21 15:44
The three ailing automakers General Motors, Ford and Chrysler can hope for an emergency loan. However, the financial injection may still fail due to the veto of the smaller Congress Chamber.
The urgently needed billions in aid for the struggling US auto industry has cleared the first parliamentary hurdle. The US House of Representatives approved a bill with 237 votes to 170 on Wednesday evening (local time) providing $ 14 billion in emergency loans for the three major automakers General Motors, Ford and Chrysler. In addition, US President George W. Bush is to appoint a commissioner who will oversee the restructuring and reorganization of companies required by Congress.
«Autozar» without authority
While the approval of the House of Representatives was considered relatively certain, the proposal in the Senate could fail due to opposition from the Republicans. In the smaller Congress Chamber, the Democrats only have a wafer-thin majority. Several Republican senators had spoken out against the bailout package because, in their opinion, the commissioner known as the “Auto-Tsar” does not have enough power to implement a radical restructuring. The president's appointee "doesn't have the authority he needs," said Republican Senator Robert Bennett of Utah.
The Democrats in Congress and the White House had wrestled for days over the bill. According to the submission, the “Auto-Tsar” can force the carmaker into insolvency proceedings if necessary if they do not present plans by March 31 how they want to reposition themselves in the long term. In addition, in return for the loan, the state will receive 20 percent of the loan amount in company securities.
No bonuses for managers
According to the draft, the 25 highest-paid managers of the companies may no longer receive bonuses. In addition, the US President's agent can block spending in excess of $ 100 million. Companies must also get rid of their company jets. The heads of the three major automakers had asked for a total of 34 billion dollars (26 billion euros) in new loans at congressional hearings.
Republican Senator David Vitter had announced that he would use "every available means" to fail the bill in the smaller Congress Chamber. At least 60 votes are needed to break a possible blockade of the draft through persistent speeches - a so-called filibuster. The Democratic majority leader in the Senate, Harry Reid, is working feverishly on an agreement with the Republicans so that there can be a vote on Thursday, Reid spokesman Jim Manley said on Wednesday. (dpa)