In a story for Automotive News, David Sedgwick analyzes the state of General Motors, Ford, and Chrysler, concluding that without a federal bailout in the next quarter, all will "face a financial collapse that could drag down suppliers, dealers and even import automakers."

The CEOs of the Detroit Big Three went to Congressional leaders last week seeking an emergency "bridge" of loans totaling $25 billion and accelerated distribution of an additional $25 billion ear-marked for a program to fund the development of more fuel-efficient vehicles.

In remarks made on Friday, President-elect Barack Obama expressed his desire to see an economic stimulus bill passed "sooner rather than later" that would include aid for the auto industry. Obama said if such a bill did not emerge from the lame-duck session, he would make it the first priority of his new administration.

All signs, however, indicate that the auto industry cannot wait until Obama is inaugurated on January 20. GM has cash reserves only sufficient to survive until mid-year, while Ford is spending approximately $2.6 billion per month.

Sales dipped 31.9 percent in October, the worst month in 25 years and production is expected to decline 19 percent in the fourth quarter over 2007 figures. Dealerships by the hundreds are going out of business across the nation. Additionally, a proposed merger between GM and Chrysler has been put off due to GM's inability to raise cash.

The ripple effect of a bankruptcy by one or more of the major Detroit automakers would be felt throughout the economy and would, in the words of one auto supplier CEO quoted in the Automotive News article, "be a death blow to the industry."