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Detroit Brass Meet Democrats in Washington as Domestic Auto Industry Nears Collapse
WASHINGTON — With at least one Detroit auto executive warning that the domestic auto industry has faced 'near collapse' in the face of an unprecedented crisis, the heads of the Detroit Big Three and the United Auto Workers are in Washington Thursday begging for more federal help. Troy A. Clarke, GM's group vice-president and president of GM North America, told Ward's on Wednesday that the U.S. auto market is 'near collapse.' Like others, Clarke says that the next 100 days are critical to the long-term survival of the domestic auto industry.House Speaker Nancy Pelosi is scheduled to meet with the Detroit contingent on Thursday to discuss further aid to the industry, according to The Wall Street Journal. Among the options: doubling the low-cost loans to be offered to ailing automakers to $50 billion as part of a second economic-stimulus package. President-elect Barack Obama has expressed support for auto aid. Word on more government help for Detroit is likely to come as early as Friday. GM confirmed it will release its third-quarter 2008 financial results that day at 10:30 a.m. ET. Ford is expected to also release its third-quarter 2008 financial results Friday. Auto analysts expect the automakers to announce billions of dollars in losses.In the meantime, the Ann Arbor, Michigan-based Center for Automotive Research (CAR) said Wednesday that nearly 3 million Americans would lose their jobs in a single year if the Big Three automakers shut down. 'To permit any of the Detroit Three manufacturers to collapse would scar the U.S. economy further at a time when it can ill afford another blow,' said David Cole, CAR's chairman. 'The likelihood of one or two of the Detroit Three manufacturers ending operations is very real. As policymakers consider their positions on assistance to the auto industry, they must decide, is an ounce of prevention indeed worth a pound of cure?'Inside Line says: The sense of urgency is increasing for the government to do something to save Detroit. — Anita Lienert, Correspondent