Monday, November 17, 2008
Leading Republicans and Democrats say they agree: Detroit's Big Three auto companies are in desperate straits and should get about $25 billion in government money to keep them from going under. But the two parties are deeply divided about where those funds should come from. Here are their dueling proposals:
_Carve out $25 billion from the $700 billion Wall Street bailout for a bridge loan to the auto industry, in exchange for a government ownership stake in the companies, a federal oversight board that could veto the firms' business decisions, strict new limits on executive compensation, environmental requirements and the elimination of dividends. Supported by Democrats, automakers and their labor unions.
_Rewrite the terms of a $25 billion loan program approved by Congress in September to help automakers retool their factories for manufacturing a new fleet of more fuel-efficient vehicles that comply with stricter rules set by Congress a year ago. Instead, use that money to address the carmakers' short-term financial problems. Supported by President George W. Bush and congressional Republicans but opposed by environmentalists.
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