The American Senate rejected the bailout of the auto sector
Blow to the American automobile industry: the Senate has rejected an emergency plan to support the automotive industry, in the amount of U.S. $ 14 billion late Thursday evening. This plan was rejected by 53 votes against 35 votes away 60 required for its adoption.
Of the announcement of this failure, the White House said his disappointment at the failure of Congress to act now and examines possible options in the light of the rejection.
This rejection is not the case of three American giants such as Ford, Chrysler and General Motors (GM). While Ford continues to say not yet need a boost federal although its survival is far from assured, GM and Chrysler provide, them being only a few weeks of bankruptcy.
This bailout yet seemed almost adopted in the evening of Thursday in the Senate, but it fails on the intransigence of the unions of the profession who refuse significant wage reduction requested by the parliamentarians Republicans next year.
The leader of the Democrat majority in the Senate, Harry Reid, said he was terribly disappointed after abandoning a bipartisan agreement that could save the big three automakers in Detroit, Ford, Chrysler and General Motors, who suffer the worst recession in auto sales for 26 years.
The Republicans MPs refuse to grant aid to the automobile as the United Auto Workers (UAW) does not accept wage cuts next year, a downward revision to bring back the wages of workers 'American automobile at those Japanese workers. The union proposes to refer the matter to 2011.
In Detroit, the automaker Chrysler says it was just rolling the funds necessary to keep the business afloat, and would struggle to pay its bills after January 1, 2009, to after its chief financial officer.
In an interview granted to the Associated Press on Thursday night, the vice-president Tom LaSorda of Chrysler and CFO Ron Kolka have explained that suppliers of automotive parts and other vendors are now asking has to be paid immediately to the delivery, the company denies. Mr. Kolka has specified that the company can not do. Chrysler can be prepared in a more suppliers ask price was renegotiated downward.
CFO of the carmaker says that January and the first quarter is a big problem for the company, noting that liquidity reserves fall to U.S. $ 2.5 billion at end December, the minimum required to pay wages, suppliers and running the business. The company expects little revenue of its sales in December, and it will have to pay U.S. $ 7 billion to its suppliers in 45 days.
The first American car manufacturer, General Motors, is also on the tightrope. It requires public support of U.S. $ 18 billion in the form of loans, while rival Ford Motor says it still has the capacity to borrow enough to finish the year. But Ford nevertheless seeking a credit line of U.S. $ 9 billion that the company would use in an emergency.
