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MotorCity · 11-20-08, 10:04

Compromise reached in Senate on auto bailout

AUTOMOTIVE NEWS
12:48 pm U.S. ET | Nov. 20

Key members of the U.S. Senate have reached a bipartisan deal to fund a rescue package for the Detroit 3, according to a spokesman for U.S. Sen. Carl Levin. It remains unclear whether the senators have enough votes or when the matter will be taken up. It's also unclear if Senate Majority Leader Harry Reid, D-Nev., has signed on to the compromise. A draft of the compromise was being worked on by Levin, D-Mich., and Sen. Christopher Bond, R-Mo., among others

Bond and Sen. George Voinovich, R-Ohio, with White House support, on Wednesday introduced legislation that would redirect $25 billion in loans to the auto industry as bridge loans to the Detroit 3 automakers. The original intent of the loans was to enable automakers and suppliers to retool to build more fuel-efficient vehicles.

Democratic leaders in Congress have resisted using those funds, instead seeking money from the recently approved $700 billion banking bailout legislation.

Levin and other auto state senators are expected to reveal terms of the compromise at a 2:30 p.m. press conference today on Capitol Hill.

There was no word about any similar activity in the House of Representatives.

The CEOs of the Detroit 3 are asking for $25 billion in federal funds to see the automakers through a cash crisis.

Still many hurdles

Even with a deal among Senate negotiators, the legislation faces hurdles. There would have to be agreement among all 100 senators, which is rare, to allow the bill to come to a quick vote in the Senate.

If that agreement is not reached, the earliest a vote might come is on Saturday and it was unclear if lawmakers would stay in Washington that long ahead of the Nov. 27 Thanksgiving holiday.

Plus, any bill likely would need at least 60 votes to overcome anticipated procedural hurdles by opponents.

Also unclear is whether the House of Representatives would stay in session late this week.

Another possibility is a vote on an auto bill sometime after the Thanksgiving holiday. Earlier this week, House Speaker Nancy Pelosi ruled out a post-holiday session. But Reid said he would talk to Pelosi later today about having another short work session.

Reid and Pelosi are scheduled to meet later today to discuss timing of legislation.

House Democratic support is crucial for passing any compromise.

11-20-08, 10:04	#171 (permalink)
MotorCity Deep Gloss Auto Salon MotorCity is offline Join Date: Jun 2007 Location: Michigan Posts: 1,340	Compromise reached in Senate on auto bailout Compromise reached in Senate on auto bailout AUTOMOTIVE NEWS 12:48 pm U.S. ET \| Nov. 20 Key members of the U.S. Senate have reached a bipartisan deal to fund a rescue package for the Detroit 3, according to a spokesman for U.S. Sen. Carl Levin. It remains unclear whether the senators have enough votes or when the matter will be taken up. It's also unclear if Senate Majority Leader Harry Reid, D-Nev., has signed on to the compromise. A draft of the compromise was being worked on by Levin, D-Mich., and Sen. Christopher Bond, R-Mo., among others Bond and Sen. George Voinovich, R-Ohio, with White House support, on Wednesday introduced legislation that would redirect $25 billion in loans to the auto industry as bridge loans to the Detroit 3 automakers. The original intent of the loans was to enable automakers and suppliers to retool to build more fuel-efficient vehicles. Democratic leaders in Congress have resisted using those funds, instead seeking money from the recently approved $700 billion banking bailout legislation. Levin and other auto state senators are expected to reveal terms of the compromise at a 2:30 p.m. press conference today on Capitol Hill. There was no word about any similar activity in the House of Representatives. The CEOs of the Detroit 3 are asking for $25 billion in federal funds to see the automakers through a cash crisis. Still many hurdles Even with a deal among Senate negotiators, the legislation faces hurdles. There would have to be agreement among all 100 senators, which is rare, to allow the bill to come to a quick vote in the Senate. If that agreement is not reached, the earliest a vote might come is on Saturday and it was unclear if lawmakers would stay in Washington that long ahead of the Nov. 27 Thanksgiving holiday. Plus, any bill likely would need at least 60 votes to overcome anticipated procedural hurdles by opponents. Also unclear is whether the House of Representatives would stay in session late this week. Another possibility is a vote on an auto bill sometime after the Thanksgiving holiday. Earlier this week, House Speaker Nancy Pelosi ruled out a post-holiday session. But Reid said he would talk to Pelosi later today about having another short work session. Reid and Pelosi are scheduled to meet later today to discuss timing of legislation. House Democratic support is crucial for passing any compromise.