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Automotive News are reporting that there’s legislation being drafted in the US right now that will be presented next week. The legislation will offer…….

…ah heck, here’s the important bits from the report at AN, which is probably subscription-only anyway:

WASHINGTON — The government’s stake in U.S. car companies would be determined by the Treasury Department, under a House proposal to rescue the Detroit 3.

Taxpayers also would be paid back first when the automakers recover, Steve Adamske, a spokesman for Rep. Barney Frank, D-Mass., said in an interview today. Frank chairs the House Financial Services Committee.

The terms outlined by Adamske are among the details beginning to emerge as Congress prepares legislation to provide emergency low-interest loans to General Motors, Ford Motor Co. and Chrysler LLC. Frank is scheduled to introduce his bill Monday.

Adamske said automakers would have to apply for the loans. Treasury would determine the government’s stake — mostly in stock warrants — based on the amount of the loan, he said.

In an interview Monday, GM CEO Rick Wagoner said it was reasonable to exchange taxpayer protection for government aid.

“Whether that’s stock warrants, restrictions on executive compensation and golden parachutes, we’ve said we’re very willing to accept those,” Wagoner told Automotive News. In announcing GM’s fifth-straight quarterly loss last week, Wagoner said GM may run out of cash to operate before mid-2009.

Frank’s legislation was drafted at the urging of House Speaker Nancy Pelosi, D-Calif.

She already has stressed that the legislation must include limits on executive pay and prohibitions on golden parachutes, plus protection for the taxpayers’ investment in the car companies.

The legislation may face opposition from Bush administration officials, who contend that the $700 billion program that would be tapped was designed to aid only financial institutions.

Adamske said today the Frank bill is “under construction.” A hearing on the measure is scheduled for Wednesday. Wagoner, Ford’s Alan Mulally, Chrysler’s Bob Nardelli and UAW President Ron Gettelfinger are expected to attend.

Sen. Carl Levin, D-Mich., is preparing a bill with provisions similar to those in the House legislation. They include government equity in the car companies as well as limits on executive compensation and bonuses, said Levin spokesman Dave Pollock. There is no specific timetable on when that bill would be introduced, he said…..

So it looks like we’re all getting a chance to breathe here. Good news. Here’s hoping they make the most of it and use some of it it to bring the new models that Saab so desparately needs.

SaabKen dropped a quote in comments the other day. It was from Bob Lutz:

“The Saab and Meriva have been delayed due to the costs involved with the final engineering programme. “To Saab the 9-5 is as important as the Astra is to Vauxhall. Saab needs the 9-5, but it’s more complex and costly to finish than the Astra.”

It’s obviously important enough, and it must be close enough now to be finished off, right?

One can dream.

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