Congress Halts Auto Bailout

guardian.co.uk — Hope that a $25 billion rescue deal for America's three carmaking giants might be thrashed out came to nothing as Democrats demanded a business plan from the ailing companies before handing over any money. GM and Ford shares had shot up by more than 25% in midday trading after a deal was proposed in Congress to expedite massive loans to the two companies, as well as privately held Chrysler. But a compromise that would have seen the $25bn, approved last month to help the carmakers turn out more fuel-efficient cars, diverted to prop up their failing businesses, was spurned by Democratic leaders. They instead gave Detroit's "big three" 12 days to submit a business plan.

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