TBO.com - TBO is Tampa Bay Online

Auto Bailout Collapses

ADVERTISEMENT

The Associated Press

Published: December 12, 2008

WASHINGTON - A $14 billion bailout for Detroit's struggling Big Three has died in the Senate after failing on a procedural vote.

The collapse came after bipartisan talks on the auto rescue broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

Majority Leader Harry Reid said he hoped President George W. Bush would tap the $700 billion Wall Street bailout fund for emergency aid to the automakers.

Republican Sen. George V. Voinovich of Ohio, a strong bailout supporter, said the UAW was willing to make the cuts - but not until 2011.

Reid called the bill's collapse "a loss for the country," adding, "I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight."

The implosion followed an unprecedented marathon set of talks among labor, the auto industry and lawmakers who bargained into the night in efforts to salvage the auto bailout at a time of soaring job losses and widespread economic turmoil.

Sen. Bob Corker of Tennessee, the GOP point man in the talks, said the two sides had been close to a deal, but the UAW's refusal to agree to wage concessions kept them apart.

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

Loading Comments...

Email Print

ADVERTISEMENT