Details of the alternative bailout plan proposed by the American Republican Party

Following yesterday’s Senate vote on the economic aid package, the outlook for the failure of the United States is not looking good, so they will have to work hard to find alternative solutions.

As we have been reporting, one of the proposals gaining the most traction is the one put forward by Republican Senator Bob Corker. Below we set out in detail the points of his bailout plan, which would prevent the massive collapse of the American automotive industry.

Manufacturers would have access to a loan of 14 billion US dollars (11.2 billion euros). However, that money would be granted only if they meet the following conditions:

1. They must get rid of two-thirds of their debt that they have before 31 March next year or else refinance it. If they cannot do either of these things, they will have to file for bankruptcy.
2. Immediate reduction of wages for workers to the level of other companies such as Toyota.
3. Payments to the unions for workers’ pensions will be made with company assets and not with liquid cash.

This solution is not unachievable and would have the potential to improve the situation of the three American groups. The key question is whether the unions accept the reduction in wages for workers.

We will be keeping an eye on whether this plan goes ahead or whether more exit strategies from the crisis continue to be proposed that prevent the disappearance of the Big Three in Detroit.

Source | Autoblog en Español