Washington, DC – The proposed US$14 billion emergency loan to help General Motors and Chrysler LLC stay solvent was defeated in the U.S. senate on Thursday evening. The Senate bill failed to reach the 60-vote minimum required to pass.
Republican requests for wage cuts in 2009 were rebuffed by the United Auto Workers union whose current contract doesn’t expire until 2011. The Associated Press reports that Republicans wanted the UAW to bring wages and benefits more in line with those of Japanese automakers in the U.S.
Automotive News reports that the Detroit Big 3 need US$34 billion to weather the economic downturn.