DEMOCRATIC LEADERS have predicted that Congress could vote on a bailout of the three big Detroit car manufacturers as early as today, but Republicans say they will not support the plan unless taxpayers' money was protected and the big three, General Motors, Ford and Chrysler, changed their ways.
"I want to support a bill that revives this industry," Senate Republican leader Mitch McConnell said.
"The auto industry is vitally important to our nation's economy and it is vitally important to my home state of Kentucky."
He added, however, that the proposal being discussed by the White House and Democratic legislators was "deeply flawed" because it would not do enough to encourage management reform and cut labour costs.
Democrats and the White House have agreed most of the details of a plan to offer General Motors, Ford and Chrysler emergency loans worth about $15 billion.
The president would appoint a so-called "car czar" to oversee industry restructuring and would give taxpayers equity stakes in the three firms equivalent to 20 per cent of the loans.
The car companies would be banned from paying dividends and owning or leasing corporate jets, while executive pay and bonuses would be limited.
Senate majority leader Harry Reid told senators he hoped for a vote by today as congressional Democrats and White House officials continued to haggle over a couple of outstanding issues.
"We would hope that we could complete work on this Detroit situation tonight or tomorrow," Mr Reid said.
Ford, which is doing better than the other companies, has suggested that it will not immediately apply for an emergency loan, although it supports the plan to help its competitors. General Motors and Chrysler have told lawmakers that they need federal help in order to survive a slump in sales and reduced access to credit.
"As part of our plan, we will abide by the conditions proposed in the bill and will continue our restructuring with great urgency," General Motors said in a statement calling on Congress to support the Bill.
Chrysler said it "looks forward to working with Congress and this administration, and the next administration, and to completing our restructuring in an orderly fashion".
The proposal will need the support of at least 10 Republican senators to avoid a filibuster while Republicans are insisting on tougher accountability measures and more concessions from trade unions.
