Area Development News Desk (12/11/2008)
The U.S. House of Representatives has passed a measure to provide
emergency funding to General Motors (GM) and Chrysler, but leading
members of the Senate have indicated that the deal is not likely to
pass or even come to a vote. The Associated Press reports that the
House measure, which passed with 230-170 votes, would provide $14
billion in emergency loans to the two automakers - Ford has already
said it does not need the emergency funding - and would require the
appointment of a "car czar" to oversee restructuring plans that GM and
Chrysler would have to submit by March 31; President George W. Bush
would appoint the overseer but his administration would be expected to
work with President-elect Barack Obama's team to reach mutual
agreement. The deal also requires limits on executive compensation, a
prohibition on paying dividends, and requirements that the government
share in future profits; it also attaches an unrelated pay raise for
federal judges. Senators opposed to the measure - most of whom but not
all are Republican - say they will filibuster it to prevent a vote,
opposed to the power of the car czar and to the fact that it does not
require GM and Chrysler to provide plans for spending the emergency
funding. Senate debates are expected to begin today. If the measure
does not pass, it is still possible that an executive branch order
could provide the emergency funding until the new presidential
administration and Congress are sworn in.

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