The bailout now faces an uphill battle in the Senate where Democrats have a 50-49 majority. Sen. Richard C. Shelby (R-AL), Sen. Bob Corker (R-TN) and other Republicans threaten to block action, despite lobbying from the White House to support the measure. However, Senate Minority Leader Mitch McConnell (R-KY) has not decided if he will support or oppose the bill.
The $14 billion package is thought to be enough to keep Chrysler and General Motors operating until spring 2009. Ford has pulled out of the bailout but may ask for a $9-billion credit line. There are far more strings and oversight in this $14 billion package than in the trillion dollars doled out to banks and finance companies.
Republican Senators are pushing for industry restructuring and are talking about introducing an alternative bill. Democrats are pushing back in support of the auto workers union, and reportedly House Speaker Nancy Pelosi adjourned the House for the holidays after the bailout vote.
Here's part of the White House statement:
Many Republicans and Democrats agree that a disorderly bankruptcy could be fatal to U.S. automakers and have devastating impacts on jobs, families and our economy... We believe the legislation developed in recent days is an effective and responsible approach to deal with troubled automakers and ensure the necessary restructuring occurs.
The White House is giving more than lip service to the deal. Vice President Dick Cheney, Chief of Staff Josh Bolten and economic adviser Edward Lazear worked Capitol Hill Wednesday, including a two-hour, closed-door meeting with Congressional Republicans.
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