US Congress to push for carmaker bailout

Pakistan News.Net
Sunday 16th November, 2008

In the US, House Speaker Nancy Pelosi has said the House plans to provide aid to the ailing U.S. auto industry.

In return, the plan will require that the industry meet new fuel-efficiency standards, produce advanced vehicles and accept restructuring, to ensure long-term economic viability.

Pelosi said the plan would also include stronger limits on executive compensation and assurances to protect the taxpayer.

Automakers have been seeking $25 billion in loans to stabilize their sinking companies.

It is believed the funds for the automaker bailout, if agreement is recahed, will come from the $700 billion financial bailout approved by Congress in October.

The House move conflicts with the White House, which has opposed using the bailout funds to help General Motors Ford and Chrysler, who have been brought down by the economic meltdown.

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