Congressional leaders have told the Detroit Big 3 to present a detailed ‘path to viability’ plan ahead of a US$25bn emergency federal loan.
“The executives have not been able to convince the Congress or the American people that this government bailout will be its last,” Senate Majority Leader Harry Reid told reporters Thursday.
The three automakers will have until Dec 2 to come up with a more detailed plan for what they intend to do with the loan funds. Congress may come back into session a week later to reconsider the issue, Reid said.
“It is all about accountability and about viability. Until we can see a plan where the auto industry is held accountable and a plan for viability on how they go into the future, until they show us the plan, we cannot show them the money,” said Nancy Pelosi, speaker of the House of Representatives.
“And that is really where we are with this. I want to join the Leader in saluting those who have worked so hard on this, and add to that our Michigan delegation in the House of Representatives.
“The auto industry is very important to our country. It is essential, its survival is essential, to maintaining our industrial and manufacturing base. That industrial base is essential to our national security. So, for reasons of our national security, for reasons that relate to the health of our financial community, and for reasons that relate to the needs of the workers who will be affected by this, it is essential that we see some restructuring, some path to viability, from the auto industry.”
Pelosi rejected bankruptcy as a way forward, but a plan is needed for accountability she said.
“Hopefully, in another week or two, we can see a plan that can take us viably into the future with accountability to the American people before we spend another dollar of their tax dollars. “