The fight over US government aid to the car industry focused on frantic negotiations in the US Senate on Thursday night after Mitch McConnell, the leader of Republican forces in the Senate, defied the Bush administration by rejecting a deal to extend a $14bn loan to Detroit.
Meanwhile, in the face of the potential congressional setback, GM has started working with law firm Weil, Gotshal & Manges on a bankruptcy filing in case it proves necessary, according a person close to the matter.
