Aid for auto industry would contain strings - KWWL - Eastern Iowa Breaking News, Weather, Closings

Aid for auto industry would contain strings

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WASHINGTON (KWWL) -- Congress is working on legislation that would give billions to U.S. automakers within a week.

But a congressional aide says the measure would yank back the money if a government-run board and overseer named by President George W. Bush decides the companies aren't doing enough to overhaul themselves.

The plan would take money from an existing loan program meant to help big auto build fuel-efficient vehicles.

The size of the package isn't final, but several congressional aides say it's expected to be about $15 billion.

In return for the money, the carmakers would have to agree to limit their top executives' pay packages, cease paying dividends, give the government a chunk of future gains and guarantee that taxpayers would be reimbursed before any other shareholders.

Online Executive Producer Nate Leding

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