American auto executives took their case for a $US25 billion industry bailout to Congress on Tuesday, warning that the industry is teetering on the brink of disaster.
Government and business officials are trying to decide how, or if, they should commit funding to bolster the struggling automakers.
The heads of General Motors, Chrysler, Ford and the United Auto Workers union all testified on Tuesday.
General Motors chief Rick Wagoner told the Senate Banking Committee the issue was about "saving the US economy from a catastrophic collapse."
The hearings came a day after Senate Democrats proposed to bail out the ailing industry with $US25 billion in government-backed loans.
Both General Motors and Ford shares fell again on Tuesday. GM shares have lost more than 90% of their value in the past 12 months and Ford is down more than 80%.
The auto industry in Europe is also under pressure. The European Union is studying support for the industry and Germany has been asked to help the Opel unit of General Motors.
Legislation under consideration by US lawmakers would provide funding on top of $US25 billion of loans approved earlier this year for the companies to improve their technologies and create a line of more fuel-efficient vehicles.
General Motors, Chrysler and Ford employ almost 250,000 people in the United States. Supporters claim they touch more than four million other jobs at suppliers, dealers, car haulers and rental companies.
