US car industry executives warned Congress last night their industry was on the brink of disaster as they pleaded for a $25 billion (€20 billion) aid package despite political opposition to another government bailout.
Addressing the Senate Banking Committee, Rick Wagoner, head of General Motors, said: "This is about much more than just Detroit. It's about saving the US economy from a catastrophic collapse."
Mr Wagoner; Robert Nardelli, head of Chrysler; Alan Mulally, CEO of Ford; Ron Gettelfinger, head of the United Auto Workers union; Michigan Senator Debbie Stabenow and economist Peter Morici testified yesterday.
For the first time, the CEOs confirmed how much they are asking from the government. General Motors is seeking between $10 and $12 billion, Ford is seeking roughly $8 billion and Chrysler would get $7 billion.
While the domestic auto industry has made mistakes in the past, the current problems have been exacerbated by one of the worst economies in nearly three decades," Mr Mulally said in testimony.
"We are hopeful that we have enough liquidity based on current economic planning assumptions and planned cash improvement actions, but we know that we live in tumultuous economic times."
The reception from legislators was somewhat less cordial than the executives are used to, however.
Senator Richard Shelby, an Alabama Republican and a member of the committee, has called the automakers "failed models" and said they should file for bankruptcy.
Criticising the bailout, Kentucky Republican Senator Jim Bunning said the proposal "is not a serious one."
The hearings came a day after Senate Democrats proposed to bail out the ailing industry with $25 billion in loans and as government. Business officials around the world decide if they should commit billions of taxpayer dollars to bolster struggling automakers.
The weakened economy and global credit crisis pushed the US government into bailing out companies including insurer American International Group Inc; investment bank Bear Stearns; and mortgage companies Fannie Mae and Freddie Mac.
Reuters