Congressional Democratic leaders said Thursday if the Detroit Big Three automakers will show them how they plan to spend the $25 billion loan they’re asking for, Congress may return in December to vote on the bailout.
Democrats are demanding the automakers show how the money would transform their struggling industry and make it more competitive before they can vote on it, the AP reports.
Senate Majority Leader Harry Reid canceled plans for a vote on a bill to take $25 billion out of the $700 billion Wall Street rescue fund to help the automakers.
A small group of bipartisan legislators circulated a proposal today to give the industry the money it needs to stay in business while guaranteeing that the separate account would not be depleted. They’ve reportedly reached a compromise on lifting the environmental restrictions on $25 billion in auto loans already allocated for the car makers, FOX Business reports.
GM and Chrysler both said they could run out of money by the end of the year. Ford said it had enough money to sustain itself through 2009.
United Auto Workers union president Ron Gettelfinger said a bankruptcy could generate others.
“If there’s a Chapter 11 (for) one of the companies, it will drag at least one other with them, if not all of them,” Gettelfinger said. “And I do not believe Chapter 11 is where it will end. It will go to liquidation.”