12/01/2008 05:12 am ET Updated May 25, 2011

Bush Administration Refuses Aid To Automakers For Merger

A deal to merge General Motors and Chrysler has hit an impasse after the Bush administration ruled out financing for it, Reuters reported, citing three people with direct knowledge of the talks.

This puts any merger of the struggling automakers on hold until after the U.S. presidential election, the sources told Reuters.

The development adds a new element of uncertainty for the embattled U.S. auto industry as Detroit's political allies warn the sector faces a deepening financial crisis that threatens tens of thousands of jobs.

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