Democrats, White House seal auto aid deal - WKOW 27: Madison, WI Breaking News, Weather and Sports

Democrats, White House seal auto aid deal


Washington, D.C. (ABC) -- President Bush and congressional Democrats have come to terms on a government loan for the big three auto companies.

  But a few fine points need to be worked out before the plan can be voted on.

  Bhe final draft of the legislation to rescue the auto industry is still being written.

  Republicans in the Senate remain opposed to some details of the package, making passage of a bail out bill for the Big 3 far from a done deal.

  A compromise between congressional Democrats and the White House, struck late Tuesday, shifted the emergency federal aid bill out of neutral.

  Under the plan, a "car czar" appointed by President Bush would dole out up to $15 billion dollars in emergency bridge loans to GM and Chrysler.

  Both companies are in worse shape than Ford.

  The car czar would have the authority to negotiate with auto unions, creditors, and suppliers, and force a company into bankruptcy if it can't agree on a restructuring deal by March 31st.

  The United Auto Workers support many of the details of the plan, including limits on executive compensation.

  But 54% of Americans oppose it, according to a recent ABC news survey, and it's these constituents who have lawmakers' ears. 

  In exchange for the federal aid, the Big 3 would have to agree to conditions similar to those imposed on the financial industry for its $700 billion dollar bail out.

  That includes limits on executive pay and a requirement that tax payers be repaid before shareholders.

Powered by Frankly