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Auto bailout falls apart in senate

A $14 billion congressional rescue plan for at least two of the Big Three automakers fell apart over GOP senators' demands for union wage cuts. Failure of the bill could send General Motors and Chrysler heading toward bankruptcy court. The Senate abandoned work on the bailout package after failing to get enough votes to close off debate. Senate Majority Leader Harry Reid, D-Nev., immediately urged President George W. Bush to use funds from the $700 million Wall Street bailout to help automakers. Meanwhile, both GM and Chrysler have retained bankruptcy lawyers. Senate Republicans demanded pay parity between union employees at U.S. automakers and employees of foreign automakers who have plants in the U.S. The United Auto Workers balked at setting a deadline for such an agreement. After the deal fell through, the White House and Treasury signaled they would consider diverting funds from the $700 billion bailout program for financial institutions.

Omnicom could lose out on $80 million if chrysler fails

Failing what looked at press time like an increasingly likely eleventh-hour rescue from the White House, Chrysler could be headed to bankruptcy court-a move that could leave Omnicom Group on the hook for $80 million. The estimate came from executives close to the matter, who said PHD, Chrysler's media agency, would be owed the most. Siblings BBDO, Cutwater and Organic are the automaker's other main advertising partners. Omnicom Group declined to comment on what steps the holding company might take or what its liability could be. Andrew Robertson, CEO of BBDO, also declined to comment. An executive close to the matter said the agency was taking steps to protect itself in the event of a Chrysler bankruptcy and a second executive said PHD officials in suburban Detroit spent the weekend preparing documents for Omnicom's attorneys related to Chrysler's indebtedness.

Campbell-Ewald makes detroit cuts

The Detroit dilemma...

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