Big Three Warn: 'Cost Would Be Catastrophic'

The Bush administration, which worked with Congress to allocate $25 billion for the auto industry to meet standards for fuel efficiency, suggested that additional funds for Detroit could come from an expansion of their package, instead of from the Troubled Assets Relief Program.

"We don't think that taxpayers should be asked to throw money at a company that can't prove that it has a long-term path for success," White House spokeswoman Dana Perino said in a briefing. "We don't think that these funds should be taken from the TARP. That was never the intent of Congress. That money is specifically for the financial industry to help prevent a collapse in our financial system."

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Big Three Make Industry-Wide Pitch

CEOs weren't the only ones soliciting lawmakers. It was an industry-wide effort with union leaders and mayors of 16 cities pushing for a bailout. Car dealers also tried to drum up support, going door-to-door on the Hill.

Chuck Eddy, a Chrysler dealer from Youngstown, Ohio, went to Congress to convey a sense of urgency.

"It needs to happen right now. We can't wait," Eddy said. "This is not a Detroit issue, it's a national, worldwide issue. ... You got 56 employees, depend on a paycheck for their living, their health care."

Jim Arrigo, who owns two Chrysler dealerships in southern Florida, said business is awful. He went from selling 385 vehicles a month in May to just 180 vehicles last month.

"Your blue collar, medium income worker right now is having a very difficult time getting car loans," Arrigo said. "There are people out there who want to buy cars, but unfortunately, there is no possible way to do it. We are looking for a loan until 2009 to 2010, where we see a little light at the end of the tunnel."

Auto industry economists say the ripple effect of bankruptcy would be felt far beyond Detroit.

Dealerships say that bankruptcy for manufacturers is a near-death sentence for them.

"Most won't buy a vehicle from a manufacturer who has filed for Chapter 11," Arrigo said. "You have no idea if you are going to get that car serviced, no idea if the guy is going to be around to do anything."