Auto Bailout Collapses on Wages

Senate Republicans refuse $14 billion in aid after UAW's Gettelfinger balks at fast wage cuts. GM, Chrysler hire bankruptcy advisors

Last-ditch efforts to forge an agreement to rescue the U.S. automakers fell apart late Thursday, Dec. 11, when union officials refused fast and deep cuts in worker pay. The collapse created the real possibility that General Motors (GM) and Chrysler will face bankruptcy in a matter of weeks, unless the Treasury Dept. acts to prevent it.

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