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Bush in £14bn auto loan deal
01.10.08
US President George Bush has overcome deep reluctance to bail out the auto industry to sign a $25 billion (£14.04 billion) loan deal for Detroit.
It is part of a spending bill Bush signed into law that will keep the US economy running until March next year. He also lifted a ban on offshore drilling against Democrats' wishes.
The relaxation "will allow us to reduce our dependence on foreign oil", Bush said.
The provisions set aside $7.5 billion in taxpayer funds needed to guarantee $25 billion in low-interest loans to help General Motors, Ford and Chrysler produce more fuel-efficient cars and trucks.
The $25 billion loan package is the biggest federal subsidy for the auto industry since the 1980 bailout of Chrysler.
It cleared Congress quietly as the focus was on the $700 billion rescue plan for Wall Street.
