US car industry plan running out of fuel

A tentative deal in Congress for a £16.9 billion package to rescue the struggling US auto industry is running out of fuel.

However, there is some hope for car manufacturers after the White House announced it could back a compromise plan to help the industry by using more than £16 billion in Energy Department loans for greener cars.

US auto-makers have said they will meet Democratic demands to offer a plan to return to profitability, and politicians said the plan could be considered during the week of December 8.

United Auto Workers President Ron Gettelfinger said politicians must take immediate action or one or more of the major car manufacturers could go under.

Mr Gettelfinger has said General Motors has the most pressing need for support, followed by Chrysler LLC, which is owned by Cerberus Capital, and then Ford Motor Co.

Even with a deal among Senate negotiators, the legislation faces hurdles. There would have to be agreement among all 100 senators, which is rare, to allow the bill to come to a quick vote in the Senate.

© Independent Television News Limited 2008. All rights reserved.

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