£9bn plan rejected
A £9bn emergency rescue package for the big three US car manufacturers collapsed today after unions refused to accept Republican demands for swift pay cuts to bring their salaries in line with Japanese car makers.
Although the House of Representatives passed the White House-backed bill on Wednesday, the US Senate rejected the bail-out package 52-35 on a procedural vote - well short of the 60 required - after the talks fell apart.
The news will be a blow to Tees Valley manufacturers, including Corus, which is petitioning the Government for similar direct support to stave off job losses.
Markets slumped on the back of the news, with the FSTE 100 falling 147 points in early trading today.
The deal would have given the ‘Big Three’ - General Motors, Chrysler and Ford - access to emergency funding to help them combat a sharp downturn in sales.
GM said in a statement it was “deeply disappointed” that the bi-partisan agreement faltered.
Meanwhile Chrysler said it would “continue to pursue a workable solution to help ensure the future viability of the company”.
Share
