Wired PR News.com – As reports continue to surface of bailout packages possibly reaching trillions of dollars, democrats were stated to ask for relief for the struggling auto industry as part of the deals. The Associated Press (AP) reported that senators plan to vote next week regarding providing a $25 billion package for the auto industry.
Democrats are seeking to have $25 billion of the $700 billion Wall Street bailout plan allocated to auto industry giants Chrysler, Ford, and GM (General Motors) in the form of loans. The government in turn would own a portion of the companies. However, there has been strong opposition from Republican members of Congress, as well as President Bush.
If approved for the package, the car companies would face certain federal restrictions including limitations on executive compensation and shareholder dividends. The AP report quotes of New York Senator, Charles E. Schumer, “We certainly want to make sure that there’s a plan how are you [car companies] going to get out of this mess.”
Photo Credit: Kevin McCoy