Prometheus 6

Not.

Vote on Detroit Bailout Nears
Measure Would Create Car Czar To Oversee Rescue
By Lori Montgomery and Paul Kane
Washington Post Staff Writers
Wednesday, December 10, 2008; A01

The White House and congressional Democrats yesterday reached an "agreement in concept" on a measure that would throw a government lifeline to the faltering Detroit auto industry but require the auto giants, their workers and creditors to quickly negotiate a plan to achieve profitability or face the prospect of bankruptcy.

The agreement calls for the government to speed $15 billion in emergency loans to the car companies as soon as next week, and for President Bush to immediately name a car czar to oversee the bailout. Under the agreement, the car czar would be required to revoke the loans unless the companies proved by March 31 that they were implementing a plan to achieve "a positive net present value," according to a senior administration official who spoke on condition of anonymity because final language was still under discussion.

Under the measure, if the firms fail to make progress, the car czar would be required to submit to Congress a new plan to restore them to financial viability, the official said, including the option of Chapter 11 bankruptcy protection. If no plan for the long-term survival of the companies were to emerge, the firms would be ineligible for any additional federal assistance.

The official said the agreement would create "three very serious sticks to ensure that this is truly what it was intended to be: bridge financing for firms that have a plan and a path to become competitive," rather than becoming "the first in a number of interminable loans that these guys can get to avoid making the hard choices."

The agreement cedes to the Bush administration its central demand that the auto giants move immediately to make changes in their operations or lose government funding. It would also ensure that the car companies would be held to a tough standard after President-elect Barack Obama takes office.