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US Senate Rejects Emergency US$14 Billion Bailout for Auto Companies
    2008-12-13 13:26:58     CRIENGLISH.com

A 14 billion US dollars emergency bailout for US automakers has collapsed in the Senate.

The collapse came after bipartisan talks on the auto rescue broke down. Republicans demanded the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers, but were refused.

The senate rejected the package late on Thursday 52-35 on a procedural vote, well short of the 60 required.

Democratic Senator Debbie Stabenow from Michigan regretted over the collapse of the bailout.

"This is about whether or not we're going to make a commitment to the middle class and a commitment to American manufacturing. You can't walk away from the America auto industry and not effect every part of manufacturing in this country."

General Motors and Chrysler said they could be weeks from collapse. Ford says it does not need federal help now, but its survival is far from certain.

Majority Leader Harry Reid, a Democrat, said he hoped US President George W. Bush would tap into the 700 billion US dollars Wall Street bailout fund for emergency aid to assist the automakers.

While expressing disappointment that Congress failed to pass the plan, the White House said it was evaluating its options in light of the breakdown.

 
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