The US Senate is due to reconvene this afternoon as White House and Democratic congressional negotiators seek to draft legislation to bailout the US auto industry and stem a deepening of the US recession.
Even if they manage to finalise an agreement in principle to provide the three largest car manufacturers with at least $15 billion in short-term loans, it was uncertain if it would become law.
Democrats have a majority in the 100-member Senate, which could begin consideration of legislation within days. But sceptical Republicans could kill such a measure with a procedural hurdle that would need 60 votes to clear.
Democratic Senator Carl Levin of Michigan, where the US carindustry is centered, said he was confident there would be a deal by Monday, but uncertain if there would be the votes. "That's a much more complicated question," Mr Levin told Fox News.
Democratic negotiators modified their draft proposal yesterday, a congressional aide said, and planned to get it to the White House for consideration.
In addition to reorganising carmakers and protecting taxpayer investment, possible conditions include creating a government "car czar" to oversee the bailout and additional concessions by the United Auto Workers (UAW) union as well as the corporate leadership.
The
New York Timesreported last night that Democrats were considering having the "car czar" lead an oversight board made up of five cabinet secretaries and the head of the Environmental Protection Agency.
Negotiators are trying forge a bill to provide General Motors, Chrysler and Ford Motors with at least $15 billion in short-term loans, although analysts say the auto industry may eventually need closer to $125 billion to survive. The three firms had sought $34 billion from Congress.
Many from the Republican party are reluctant to approve another rescue plan after a $700 billion package they passed for Wall Street in October triggered a voter backlash in the November 4th congressional elections.
If the deal passes the Senate, it would go to the House of Representatives for anticipated concurrence. The measure would then be sent to president George W. Bush as one of the last ones he signs into law before president-elect Barack Obama succeeds him on January 20th.
"I have said repeatedly that to allow the auto industry to collapse precisely at a time when we are seeing record joblessness in unacceptable," Mr Obama said in Chicago last night.