US Senate Rejects Auto Industry Bailout Plan

In a vote of 52-35, the US Congress failed to pass the bill needed to bailout struggling automakers with a $14 billion package last Thursday night. With just eight votes shy of passing, the bill was narrowly rejected in an effort to supply the auto sector with emergency aid to Detroit’s “Big Three”.

GM said in a statement it was “deeply disappointed” by the failure to pass the bill. “We will assess all of our options to continue our restructuring and to obtain the means to weather the current economic crisis,” the company said. Chrysler, too, said it “will continue to pursue a workable solution to help ensure the future viability of the company.”

While Congressional Republicans have been in open revolt against Bush over the auto bailout, the breakdown of supporters for the bill was 10 Republicans, 40 Democrats and two independents backing the package.  However, some Democrats joined Republican support in turning against the House-passed bill – despite Barack Obama’s urgent expressions of support for quick action to the US automakers.