Washington on track to bail out automakers

Washington: Facing massive job losses and an industry collapse, the White House and congressional Democrats were in frantic negotiations last night over a deal to provide about $15 billion [Dh55 billion] in loans to prevent Detroit's weakened auto industry from disaster.

The rescue efforts came as President-elect Barack Obama said on Saturday his plan to create at least 2.5 million new jobs included the largest infrastructure investment since the 1950s and a huge effort to reduce US government energy use.

The White House said on Saturday it was in "constructive discussions" with lawmakers in both parties to dole out the assistance as congressional leaders laid the groundwork for bailout votes later this week.

A breakthrough on the long-stalled rescue came when House Speaker Nancy Pelosi yielded to President George W. Bush on a key point: allowing the aid to be drawn from a fund set aside for the production of environmentally friendlier cars.

In his weekly radio address, Obama said the United States will also make a big push to expand access to high-speed Internet and modernise school buildings across the country, he said. "We need action - and action now," Obama said.