US Senate rejects car bailout
Updated on 12 December 2008
American lawmakers vote against a $14bn plan to rescue the big three US car manufacturers.
Support collapsed in the Senate after a union refused to accept Republican demands for swift pay cuts, writes PA.
Cross-party talks on the rescue broke down over the Republican demands that the union agree to steep cuts by 2009 to bring their pay into line with Japanese car makers.
Senate majority Leader Harry Reid said he hoped President George Bush would tap the £465 billion Wall Street bail-out fund for emergency aid to the car makers.
