US car bail-out collapses
13-12-2008
A US$14 billion bail-out package for the beleaguered American car industry has died in the Senate after failing to get enough support in a procedural vote. The failure came after bipartisan talks on the rescue plan collapsed over Republican demands that the United Auto Workers union agree to swift wage cuts. The White House said the bill had been the Big Three car makers' "best chance to avoid a disorderly bankruptcy." The House of Representatives passed the White House-backed bill on Wednesday. The Democrats needed some Republicans to back the bill in the Senate as they have a majority of just one, and some in their own party were expected to vote against. The Senate majority leader, Harry Reid, said he was "terribly disappointed" when it became clear the vote had collapsed. "Millions of Americans, not only the auto workers but people who sell cars, car dealerships, people who work on cars are going to be directly impacted and affected," he said. The news triggered a big fall in share prices around the world.
