White House, Democrats close on car deal

WASHINGTON Dec 8 (Reuters) - The White House and congressional Democrats neared agreement on Monday on a $15 billion proposal to bail out U.S. automakers, a plan that would extend loans and leave key government decisions on broad restructuring to the next presidential administration.

The draft legislation, obtained by Reuters, would designate a "car czar" to oversee the rescue plan and would require each automaker -- Chrysler, Ford and GM -- to submit a restructuring plan by March 31.

It would also allow the government to hold non-voting, common, or preferred stock in the companies and sets the terms for loans to a seven-year duration at 5 percent, and after five years rising to 9 percent.

The draft legislation said the action was needed to "stabilize the U.S. economy" and to "restore liquidity and stability" to the U.S. auto industry.

Congress is expected to consider the legislation this week in a rescue geared to averting the threatened collapse of General Motors Corp and Chrysler LLC, and saving thousands of factory and millions of related jobs during a worsening U.S. recession.