Three of America's biggest car manufacturers have asked US politicians for a $25 billion bail-out.
Ford, General Motors (GM) and Chrysler have warned that millions of jobs and up to 10% of the country's gross domestic product (GDP) could be lost without US government intervention.
GM chief executive Rick Wagoner told a Senate hearing that the firm could run out of funds in a matter of weeks. "It's about saving the US economy from a catastrophic collapse," he said.
And in the UK, manufacturers and retailers have written to Chancellor Alistair Darling and Business Secretary Lord Mandleson, asking for access to cash earmarked to support the banking system.
The letter, sent jointly by the Society of Motor Manufacturers and Traders and the Retail Motor Industry Federation, calls on the Government to abandon planned increases in car tax, including the First Year Rate due to be introduced in 2010.
"The motor industry faces a set of unprecedented market conditions," said SMMT chief executive Paul Everitt. "Urgent action is required to boost demand for new vehicles and ease pressure on UK automotive suppliers."It is unclear whether the chancellor's pre-Budget report, due on 24 November, will include measures to support the UK car industry.
This week, Ford sold a 20% stake in Japanese car manufacturer Mazda Motor - taking its share in the firm from 33% to 13%. GM also sold its 3% stake in Japanese carmaker Suzuki for $230m (£156m).
