Digital News Report- The White House and Democratic lawmakers have finalized a government bailout deal for American automakers today. This will create a government “car czar” to dole out the loans, with the power to force the carmakers into bankruptcy if they didn’t cut quick deals with labor unions, creditors and others to restructure their businesses and become viable.
Sen. David Vitter, R-La., was not so sold on the finalized plan. He said the package has an “ass-backwards” approach to fixing the U.S. auto industry. He also threatened to filibuster, which could delay the final vote for days.
Other Republican lawmakers expressed similar concerns in a press conference on Wednesday. Sen. Richard Shelby R-Al fears that it would make the big three less competitive and that the bailout won’t fix the problem.
Senate Majority Leader Harry Reid, R-Ariz., said “it appears unlikely” the Senate will vote Wednesday on the auto bail out legislation due to the Senate Republicans wanting to study it before deciding how to proceed on the package. He adds that it could be as late as Saturday or Sunday night before they pass the bill.
The big three, General Motors Corp., Chrysler LLC, and Ford Motor Co. would have to negotiate with labor unions, creditors and others and submit blueprints by March 31 to the industry czar showing how they would restructure to ensure their survival, if this bill passes.