The White House could step in to save America’s collapsing car industry, it emerged this evening.
President Bush has suggested that he’s ready to offer car-makers access to a £469 billion rescue fund that was meant to prop-up Wall Street.
Pulling an astonishing handbrake turn over the issue, Bush is set to allow General Motors and Chrysler access to the Troubled Asset Relief Programme (TARP).
Set up in October, it is money that has been underpinning some financial firms and banks. Until now, the White House has opposed industries having access to the £469 billion pot.
But it’s understood that the very real spectre of huge job losses has forced the outgoing President’s hand.
"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time,” said a White House spokesman.
TARP allows Washington to use taxpayers money to take a stake in struggling firms. The firm is then expected to repay the money over time.