The U.S. Senate voted down a $14 billion bailout package for automakers.
The United Automobile Workers union and members of Congress were unable to reach an agreement over wage concessions. Some members of Congress proposed that wages of U.A.W. members be lowered to compete with those of workers at non-union U.S. plants run by foreign automakers like Toyota or Honda.
Following news of the rejection, stocks fell in Europe and Asia.
Roben Farzad, a senior writer and columnist for BusinessWeek magazine, joins Martin Savidge to discuss the future of General Motors, Ford and Chrysler and how overseas auto manufacturers are benefiting from the confusion surrounding these automakers. He also explores wage rates for workers and the role of foreign automakers in the rejection of the bailout package.