The senate passed a bill that will likely total over $600 billion in spending measures on tuesday.  Of that $25 billion is for backed loans to the auto industry.  The inclusion of the low-interest loan guarantees is a victory for struggling U.S. manufacturers General Motors Corp, Ford Motor Co, and Chrysler LLC, which is controlled by private equity firm Cerebus Capital Management LLC.

“I’m not a fan of the American auto industry and I’m not a fan of this provision. But Congress authorized it and we’re providing the funding for it,” said Obey, a Wisconsin Democrat.

Included in the package is a tax rebate for people tha buy plugin hybrid vehicles.  The credit starts at $2500 and goes up to $7500 based on the type of vehicle bought.  The credit doesn’t phase out until the automaker has sold 250 thousand plugin hybrids.

Source: Reuters