US Senate rejects US$14 billion loan bailout for auto companies

• Report rights infringement
• published: 21 Jul 2015
• views: 20

SHOTLIST 1. Wide of Senate floor 2. SOUNDBITE (English) Christopher Dodd, Senator (Democrat-Connecticut ): "The blow to the American conscientiousness and confidence and capability is beyond economic terms, if that occurs. Now I pray this evening that it will not happen." 3. SOUNDBITE (English) Richard C. Shelby, Senator (Republican-Alabama): "These companies have either already failed or are failing. And that's a shame. These aren't the General Motors, Ford and Chrysler I knew but we all in America will benefit by competition." 4. SOUNDBITE (English) Debbie Stabenow, Senator (Democrat-Michigan): "This is about whether or not we're going to make a commitment to the middle class and a commitment to American manufacturing. You can't walk away from the America auto industry and not effect every part of manufacturing in this country." 5. SOUNDBITE (English) Amy Klobachur, Senator (Democrat-Minnesota): "On this vote, the yeas are 52, the nays are 35. Three-fifths of the Senators dually chosen and sworn not having voted in the affirmative, the motion is not agreed to." 6. Wide of Senate floor with vote count on screen STORYLINE: A 14 (b) billion US dollars emergency bailout for US automakers collapsed in the Senate after the United Auto Workers union refused to accede to Republican demands for swift wage cuts. The collapse late on Thursday came after bipartisan talks on the auto rescue broke down over Republican demands that the union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers. Majority Leader Harry Reid, a Democrat, said he hoped US President George W. Bush would tap into the 700 (b) billion US dollars Wall Street bailout fund for emergency aid to assist the automakers. General Motors (GM) Corp. and Chrysler LLC have said they could be weeks from collapse. Ford Motor Co. says it does not need federal help now, but its survival is far from certain. GM said in a statement is was "deeply disappointed" that the bipartisan agreement faltered. The White House said it was evaluating its options in light of the breakdown. "It's disappointing that Congress failed to act tonight," a White House statement said. The Senate rejected the bailout 52-35 on a procedural vote, well short of the 60 required - after the talks fell apart. The implosion followed an unprecedented marathon negotiations in Washington among labour, the auto industry and lawmakers who bargained into the night in efforts to salvage the auto bailout at a time of soaring job losses and widespread economic turmoil. The group came close to agreement, but it stalled over the union's refusal to agree to wage cuts before their current contract expires in 2011. Aid the automakers gained urgency last week when the government reported the economy had lost more than a half-million jobs in November, the most in any month for more than 30 years. The stunning disintegration was eerily reminiscent of the defeat of the 700 (b) billion US dollars Wall Street bailout in the House, which sent the Dow tumbling and lawmakers back to the drawing board to draft a new agreement to rescue financial institutions and halt a broader economic meltdown. That measure ultimately passed and was signed by Bush. It wasn't immediately clear, how the auto aid measure might be resurrected in a bailout-fatigued post-election Congress, with Bush's influence at a low. Democratic House Speaker Nancy Pelosi called Senate Republicans' refusal to support the White House-negotiated bill irresponsible and also urged the Bush administration and the Federal Reserve to provide short-term relief for the automakers. GM says the average union labourer makes 29.78 US dollars per hour, while Toyota says it pays about 30 US dollars per hour. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/d72b01094a2639c42011422ecd6df811 Find out more about AP Archive: http://www.aparchive.com/HowWeWork