White House considers auto bail-out
13-12-2008
The White House says it is considering using money earmarked to rescue the US banking industry to bail-out the country's struggling carmakers. President George W. Bush's press secretary says it would be "irresponsible" to further weaken the economy by letting the Detroit car companies fail. Dana Perino says the White House normally would prefer to let the financial markets determine the companies' fate. But she says that given the economy's shape, the White House will consider other options if necessary to prevent the automakers' collapse - and that could mean using money from the US$700 billion Wall Street rescue. A $14 billion bail-out deal for the US car industry failed to get Senate support, raising fears of job cuts and a possible industry collapse. The Big Three US car manufacturers - Chrysler, General Motors and Ford - employ 250,000 people directly, and many more indirectly, in companies making auto parts and car dealerships.
