(Adds more details from the letter.)
By Josh Mitchell Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- Democratic leaders in Congress spelled out the terms Friday for Detroit's auto makers to be considered for government aid, calling on chief executives of the companies to provide a "credible restructuring plan" for their foundering businesses.
U.S. House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., said the companies must provide a "forthright, documented assessment" of their companies' finances, including the amount of money they need to return to "long-term viability."
The letter sets a Dec. 2 deadline for the plans to be submitted to Democratic Congressional leaders. If the plans pass muster, Congress would convene the second week of December to consider an aid package for General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLC, the letter states.
"The auto companies' shareholders, business partners, and prospective benefactors - the American people - deserve to see a plan that is accountable to taxpayers and that is viable for the long-term," the letter states. It adds that taxpayers deserve to see top auto executives "making significant sacrifices and major changes to their way of doing business."
The letter was sent to GM's Rick Wagoner, Ford's Alan Mulally and Chrysler's Robert Nardelli a day after the Democratic leaders concluded that there wasn't enough support in Congress for a $25 billion bailout of the auto makers.
The Democratic leaders said the auto makers hadn't convinced lawmakers that they had a coherent strategy to return their companies to financial footing.
In the letter sent Friday, the Democratic leaders called on the CEOS of Detroit's auto makers to provide the terms of the loans they are requesting, with various estimates based on vehicle sales at current rates, slightly improved rates and weaker rates.
Any taxpayer-funded loans provided to companies would have to be granted "senior status," meaning they would be paid off before any other debt held by the companies, according to the letters. The government would also be given warrants to buy company stock at reduced prices.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=%2FyQit1qi1GWz7Y2iwr8Vcw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 21, 2008 17:40 ET (22:40 GMT)

Publié le 21 novembre 2008 Copyright © 2008 Dowjones