US carmakers still seek bail-out

After much disagreement between Congressional Democrats and Republicans and the White House as to where funding for the bail-out should come from, US politicians are seeking a compromise plan to aid the countryÔÇÖs devastated car industry. ┬á Chief executives from Ford, General Motors, and Chrysler have asked for a vital $25 billion bail-out package to help them survive, and while Democrats suggested taking the money from the $700 billion bank bail-out, Republicans and the Bush administration are opposed to the idea.┬á Democratic Senator Carl Levin said an ÔÇ£effortÔÇØ is being made to bridge the gap between supporters and opponents of a rescue plan and provide a bridging loan to Detroit. Republican Senator Mitch Connell said ÔÇ£the only proposalÔÇØ that has any chance of becoming law is a compromise. ┬á Many commentators and regulators are suggesting Chapter 11 bankruptcy for the three large automakers; calling for much-needed reforms and restructuring in order to invest in more fuel-efficient vehicles. Critics have argues that many of the industryÔÇÖs problems are self-made, citing their opposition to tougher fuel-efficiency regulations and their past reliance on thirsty trucks and SUVs. ┬á Republican Senator Richard Shelby said he believes bankruptcy is the best option for the car industry. ┬áÔÇ£I donÔÇÖt think they have immediate plans to change their model, which is a model of failure.ÔÇØ He also called for senior management changes, saying ÔÇ£these leaders have been failures and they need to go.ÔÇØ ┬á General Motors president and chief operating officer Fritz Henderson explains in a recent interview with the BBC News website the companyÔÇÖs decision not to invest in technology and research for more fuel-efficient cars- an investment that has proven successful for rival Toyota. ┬á ÔÇ£Five to ten years ago we looked at a hybrid propulsion system, and said: ÔÇÿhybrid, that means thereÔÇÖs two propulsion systems- gas and electric. Therefore itÔÇÖs got to be more costly,ÔÇÖÔÇØ he said. ÔÇ£So we minimized the investment because we didnÔÇÖt think it was efficient-not a good decision.ÔÇØ ┬á ChryslerÔÇÖs chief executive Bob Nardelli rejected advice from officials to seek Chapter 11 bankruptcy protection. ÔÇ£We just cannot be confident that we will be able to successfully emerge from bankruptcy.ÔÇØ ┬á Democratic Senator Carl Levin thinks a solution will be reached by US politicians. ÔÇ£It would be unthinkable for Congress not to be able to reach a conclusion when the leadership of Congress, the president and the president-elect all say they support bridge loans,ÔÇØ he said.