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No agreement for US car bail-out No agreement for US car bail-out
(about 1 hour later)
US politicians have said there is no agreement on a rescue plan to help the crisis-hit "Big Three" carmakers. US politicians have told the crisis-hit "Big Three" carmakers to come up with their own viable recovery plan if they want a $25bn (£17bn) government rescue.
The leaders of the two houses of Congress were speaking after four senators had announced agreement on a bipartisan $25bn bail-out package. They said there was no agreement to help Ford, General Motors and Chrysler, who have been given a 2 December deadline to present a plan.
Instead Ford, GM and Chrysler have been given until 2 December to come up with their own viable recovery plan. House Speaker Nancy Pelosi said without a plan there would be no bail-out.
House Speaker Nancy Pelosi warned the car firms that without a plan, they would not get public funding. The leaders of both houses of Congress spoke out after four senators announced agreement on a bipartisan aid package.
Democratic Senate Majority leader Harry Reid said that there was so far no plan to rescue the car industry that could pass through Congress. "The executives of the auto industry have not been able to convince the American people or the Congress that this bail-out would be their last," said Senate majority leader Harry Reid.
Earlier on Thursday, Democratic Senators Carl Levin and Debbie Stabenow, from Michigan, the heart of the US car industry, and Republicans Kit Bond of Missouri and George Voinovich of Ohio said they had a deal, but this did not garner wider support. Democratic leaders in Congress have now put off a vote on the $25bn bail-out of the car industry until next month.
The chief executives of General Motors, Ford and Chrysler pleaded for a $25bn bail-out before two congressional committees this week, but came away empty-handed. They want the top companies to present a plan showing that the money would make them financially viable.
At a news conference in the Capitol, Ms Pelosi said: "Until they show us the plan, we cannot show them the money."
She said there was no plan in circulation that could pass both houses of Congress and win President George W Bush's approval.
Jobs risk
Earlier on Thursday, Democratic Senators Carl Levin and Debbie Stabenow, from Michigan, the heart of the US car industry, and Republicans Kit Bond of Missouri and George Voinovich of Ohio said they had a bipartisan deal, but this did not garner wider support.
"Obviously, we are disappointed we are not going to act today," said Senator Levin.
The chief executives of General Motors, Ford and Chrysler pleaded for the $25bn bail-out before two congressional committees this week, but came away empty-handed.
The car firms say they risk collapse, which could lead to millions of Americans losing their jobs.The car firms say they risk collapse, which could lead to millions of Americans losing their jobs.
Shares in General Motors soared 27%, while Ford rose 28% on hopes of a deal. Chrysler is privately held.
Democrats have demanded that the White House and the Treasury carve out $25bn in funding from the already-agreed $700bn finance industry bail-out to support the car firms.Democrats have demanded that the White House and the Treasury carve out $25bn in funding from the already-agreed $700bn finance industry bail-out to support the car firms.
However, the White House and many Republicans favour using a $25bn loan programme designed to help the companies develop more fuel-efficient vehicles.However, the White House and many Republicans favour using a $25bn loan programme designed to help the companies develop more fuel-efficient vehicles.
Meanwhile, the United Auto Workers president, Ron Gettelfinger, said on Thursday that politicians needed to take immediate action on a $25bn bridge loan bill to support the US car industry, otherwise he said one or more firms could fail.Meanwhile, the United Auto Workers president, Ron Gettelfinger, said on Thursday that politicians needed to take immediate action on a $25bn bridge loan bill to support the US car industry, otherwise he said one or more firms could fail.
Mr Gettelfinger, who testified on Tuesday and Wednesday to congressional committees in support of the loans, said action was needed "now, today".Mr Gettelfinger, who testified on Tuesday and Wednesday to congressional committees in support of the loans, said action was needed "now, today".