WASHINGTON – Congress could consider a rescue plan for the sagging auto industry during what it hopes will be its final meeting this year.
Congressional leaders are working with the Bush administration and representatives of the Obama transition team on a plan that includes $15 billion in bridge loans to Chrysler, Ford and General Motors. Negotiators are also push to create a government panel to oversee the restructuring of the automobile industry. It would give the government equity stakes in the company, limit executive compensation and ban the payment of dividends to shareholders while the loans are outstanding, according to several published reports.
In an interview aired Sunday, on NBC's Meet the Press, President-elect Barack Obama said the automobile industry would have to undertake a major reorganization and concessions by several stakeholders.
They're going to have to restructure .And all their stakeholders are going to have restructure. Labor, management, shareholders, creditors–everybody is going to recognize that they have–they do not have a sustainable business model right now, and if they expect taxpayers to help in that adjustment process, then they can't keep on putting off the kinds of changes that they, frankly, should have made 20 or 30 years ago," he said.
Senate Banking Committee Chairman Christopher Dodd (D-Ct.) said on CBS' Face the Nation that GM Chairman and CEO Rick Wagoner should resign or be fired.
The new Congress is scheduled to be sworn in on Jan. 6.
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