$15billion U.S. Auto lifeline

There were fresh news on U.S. Congressional Democrats and White House negotiators agreed on the outlines of a $15 billion plan to give General Motors and Chrysler federal loans to stay in business while requiring them to restructure their operations. An agreement in concept with lawmakers and that negotiations on details were still continuing. However, the plan still needs voting of approval from the Senate.

The legislation would however, include protections for taxpayer money, including the appointment of a so-called car czar who could force the companies into Chapter 11 bankruptcy if the companies don’t come up with a viable business restructuring plan by the deadline of March 31, 2009. Nevertheless, a 30-day extension beyond the deadline is possible if the plan is determined to be positive on a preliminary basis.

Both GM and Chrysler have said they need at least $14 billion in combined aid to keep them from running out of cash by early 2009.

More than a million Americans are believed to be employed in the U.S. automotive sector. Another reason why U.S. Government cannot afford to let them vanish, perhaps?