The bosses of the ‘Big Three’ US car makers yesterday returned to Detroit empty-handed as Congress put bail-out plans on hold.
A bipartisan group of senators, including Michigan's Carl Levin, put forward a plan earlier in the day to allow the retargeting of the $25bn ‘green’ package intended for factory modernisation.
But the proposal was knocked back by speaker Nancy Pelosi and Senate majority leader Harry Reid, who said: "no one has come up with a plan that can pass the House and the Senate and be signed by the president."
Congress has now been adjourned until 2 December, when the car makers will have to explain to US politicians how they intend to use any bail-out cash.
“Unless they can show us the plan, we can’t show them the money,” Pelosi said yesterday.
Since approving the $700bn funding to allow the financial system to collect together its toxic assets, the US government has come under increasing criticism for allowing the money to be redirected towards recapitalisation, a role that some believe could have been performed by the private sector.