auto bailout negotiations fail in senate, page-93

Harcourt who are they??? Clearly states in this article that from a senate point of view it is over for this year. As gm only has enough coin to run till the end of the month they will fold.

WASHINGTON (Reuters) - A proposed bailout of U.S. automakers failed in the Senate on Thursday night, raising the specter of an industry collapse that sent Asian markets reeling and sparked fears it could deepen the recession.

"It's over with," Senate Majority Leader Harry Reid said of congressional efforts this year just before the Democratic proposal to extend up to $14 billion to the stricken industry fell short in voting on a procedural motion.

Pressure immediately shifted to the White House, with calls for President George W. Bush to consider intervening with emergency financing.

General Motors Corp and Chrysler LLC sought billions in aid to see them through March and have warned of potential collapse if they did not receive a bailout.

"I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight," Reid said.

Markets across the Asia-Pacific region fell more than 3 percent on the development, with Japan's Nikkei average and Hong Kong's Hang Seng both down more than 5 percent. European and U.S. stocks were expected to fall about 5 percent.

Shares of Toyota Motor Corp were off 10 percent and Honda Motor Co fell 12.5 percent on worries about massive disruptions in the U.S. economy if one or more of its automakers collapse.

U.S. crude prices fell by more than $2 to $45.90 a barrel, while the yen hit a 13-year high against the U.S. dollar.

Because of their shared suppliers and vendors, industry observers fear the failure of one Detroit manufacturer could drag down the other two as well as other businesses.

Lawmakers have been among the industry's biggest critics. But Democrats and some Republicans -- and the White House in the end -- scrambled to put together a legislative lifeline because no one wanted to be blamed for a deepening U.S. recession if any of the companies went bankrupt.

Job losses hit a 34-year high in November and the unemployment rate reached a 15-year high.

GM, Ford Motor Co. and Chrysler employ nearly 250,000 people directly, and 100,000 more jobs at parts suppliers could hang on their survival. The companies say one in 10 U.S. jobs are tied to the auto sector, which adds up to several million.

BANKRUPTCY CONCERN

GM and Chrysler both said that in the face of their cash crises, they had hired outside advisers to help them explore possible bankruptcy, which they found had too many drawbacks.