Key members of Congress are now in the process of preparing emergency legislation to provide aid for the auto industry. The American automakers and the UAW are themselves pushing for a further $25 billion in loans.
Currently, most congressional leaders are looking to include of including American automakers in the present $700 billion financial rescue program. Senator Carl Levin of Michigan confirmed that this bipartisan legislation would be put forward to help the automakers if the Bush administration fails to "understand the impact of the auto industry on the economy." "Emergency assistance to the automobile industry would be conditioned on executive compensation restrictions, a prohibition on golden parachutes, rigorous independent oversight, and other taxpayer protections to ensure that any companies that benefit from this assistance, and not the taxpayers, bear the full burden of repaying any costs that are incurred," said House Speaker Nancy Pelosi. In addition, Senator Barbara Mikulski of Maryland is planning to introduce a separate bill to make loan interest deductible from taxes for the auto industry. She will be announcing the details of this plan by the end of the week. Source: Automotive News