The US government has agreed ‘in principle’ a bail out for struggling US car manufacturers the Financial Times reports this morning. A $14bn emergency loan for to be made available to US carmakers although details are yet to be concluded. Loans will be made available to GM and Chrysler while Ford has also stated that it may also require government assistance.
Company shares in GM and Ford soared in anticipation as the news broke yesterday that negotiations for the loans were nearing conclusion. Differences in how the restructuring of the car manufacturers should be monitored are delaying the finalisation of bail out plans. Congressional democratic leaders would like to see a board of financial advisers to oversee the redevelopment of the car manufacturers while the White House is insistent on the creation of a ‘Car Tsar’ or ‘Financial Viability Adviser’ to monitor the process, The Guardian reports.
President-elect Barack Obama has spoken out in support for the bailout legislation. The Telegraph reports that the emerging bailout plan would draw emergency aid from an existing loan programme meant to help the carmakers build fuel-efficient vehicles, which will no doubt infuriate green groups.
