The auto industry has taken a major step towards bankruptcy protection in a deal that could provide some relief to its struggling members and the broader economy.
In a stunning move, the U.S. Federal Reserve on Tuesday approved a loan package that includes a $5 billion infusion of cash that could help finance an emergency plan for the industry that includes an orderly shutdown of the nation’s auto plants.
The plan was announced after months of negotiations that culminated in the Federal Reserve meeting last week to approve the deal that would allow automakers to resume selling cars in large volumes through early 2018.
It is likely to be the most significant rescue for the auto market in decades.
Its collapse has already cost the U