Multi-billion car bail-out likely

A multi-billion dollar deal to bail-out America's failing car industry will "very likely" be reached by the end of this week, the White House has said.

Press secretary Dana Perino said the deal with the US Congress, expected to be worth around half the requested $34 billion (£22.9 billion) could happen earlier than expected. The two car firms, General Motors (GM) and Chrysler, have announced that they "will not survive beyond the end of the month" without the emergency help.

The Big Three car firms, GM, Chrysler and Ford, have to show a detailed plan for how they will be viable and profitable in the long-run to persuade US Congress to vote for the bail-out.

Part of the rescue package has stipulated that GM chief executive Rick Wagoner resign from his role.

Senator Chris Dodd, chairman of the Senate Banking Committee, said GM chief Mr Wagoner "has to move on" as part of a government-run restructuring.

Ms Perino said of the deal with US Congress: "It sounds like we have agreement on those basic principles that would be required for a bill that the president could sign.

"If they want to work with us, we'll meet them halfway."

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