Auto Bailout Gets Close To A Vote

The automaker bailout plan continues to grind through Washington DC today, with Congressional Democrats and the White House coming to terms on a $14 billion short-term emergency loan package for General Motors (NYSE: GM) and Chrysler LLC.

The plan would create an auto czar and the loans will be given with the condition that the automakers must be able to come up with viable plans for long-term survival or the money will be required to be returned. The plan also does not rule out future bankruptcies.

A vote could come to the House later today.

House Republicans are seen opposing the bailout plan, but their votes may not be needed for approval of the bill. Work may still be needed in the Senate to ensure passage there.

The automakers have requested a total of $34 billion, but this plan will only give the most beleaguered of the Big 3, GM and Chrysler, enough to last a few more months and then a new longer-term package will be addressed in the future. Ford (NYSE: F) will not likely see any of the short-term money, as they have enough cash to last maybe another year. Ford asked for $9 billion in case the operating environment gets worse or if either of the other two companies goes bankruptcy, but that request will likely be taken up in the longer-term automaker plan.

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