A $14bn (£9.4bn) bail-out package for the beleaguered US car industry has died in the Senate after failing to get enough support in a procedural vote.

The failure came after bipartisan talks on the rescue plan collapsed over Republican demands that the United Auto Workers union agree to swift wage cuts.

The White House said the bill had been the Big Three car makers' "best chance to avoid a disorderly bankruptcy".

The House of Representatives passed the White House-backed bill on Wednesday.

The Democrats needed some Republicans to back the bill in the Senate as they have a majority of just one, and some in their own party were expected to vote against.

BBC News

Advertise With MMG. Click Here Now To Find Out How.