US car industry bail-out deal finalised

Congressional Democratic leaders and the White House have finalised a deal to spend $15bn (€11.54bn) on emergency loans for struggling US car makers, officials said today.

The measure could see a House of Representatives’ vote later tonight and be enacted by week’s end.

It would create a government “car tsar” to dole out the loans, with the power to force the car makers into bankruptcy if they did not make quick deals with labour unions, creditors and others to restructure their businesses and become viable.

Congressional Republicans, left out of negotiations on the package, are expressing grave reservations and may seek to block it.