The White House and the Democrats are edging towards an agreement aimed at rescuing America’s car making giants. The bailout is worth up to seventeen billion dollars.
US lawmakers on both sides of the political divide say they are working towards legislation which protects taxpayer investment and car makers must submit their cost cutting plans to Washington by March the thirty first.
Republican House Speaker Nancy Pelosi said: “It may take more than 15 billion dollars to get to March 31 but come March 31 it is our hope there will be a viable automotive industry in our country with transparency and accountability to the tax payer.”
US lawmakers blame the automotive companies for getting themselves in to a financial mess by failing to innovate and business practices which has made them made them vulnerable to downturns.
Now all the car giants have to prove their viability and some like Chrysler still may not survive, unless they find a merger partner.