GM and Chrysler rescue faces fight in US Senate (click title of article - thank you)
The US House of Representatives late on Wednesday night approved the $14bn (£9.4bn) rescue package for the country's ailing car industry but its passage through the Senate is far from certain.
By James Quinn, Wall Street Correspondent
Last Updated: 10:58AM GMT 11 Dec 2008
The House voted 237-170 in favour of the bill, which will advance funds to General Motors and Chrysler immediately, and pave the way for further cash for the pair and rival Ford as long as the companies fundamentally restructure.
The trio asked for $34bn, but will only get $14bn because of politicians' continued worries over the use of hard-pressed taxpayers' money. The bill now faces it biggest challenge and needs to gain the support of at least 60 of 100 Senators in order to pass that stage and be handed to President George W. Bush to sign.
A group of leading Republican Senators are resisting the legislation in its current form. The Senators, including Senator Richard Shelby, want more powers for the so-called "car tsar" who will be tasked with monitoring the companies use of the cash and ensuring they restructure by the end of March.
Senator Shelby said of the money: "This is an installment on a huge bail-out that will come later," arguing the $14bn alone would not make the company's become competitive.
"Unless Chrysler, Ford and General Motors become lean and innovative and competitive in the marketplace, this is only delaying their funeral," he continued....
