Republicans wary of car deal

Uzbekistan News.Net
Wednesday 19th November, 2008

Republican senators in the US have told the US car industry it should consider bankruptcy protection rather than a government bailout.

During a Senate hearing in Washington, where the chief executives of the big three US manufacturers have made their case for emergency funds, Republicans on the panel said they doubted they would vote this year to extend bailout money to the auto industry.

Senator Mike Enzi of Wyoming said: 'I would not be surprised if we find ourselves and the domestic auto industry in the same situation six months, or a year, from now.'

Senator Jim Bunning of Kentucky attacked Democratic proposals for government cash help to the car industry by saying the companies should instead look at a pre-arranged Chapter 11 bankruptcy restructuring.

The issue of giving an extra $25 billion in aid to the big three manufacturers, over and above a $25 billion program already in place, has pitted the Republican Party against the Democrats.

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