America's auto industry may go bankrupt - WKOW 27: Madison, WI Breaking News, Weather and Sports

America's auto industry may go bankrupt


Washington, D.C. (ABC) -- The situation remains tenuous for America's carmakers and the people who work for them.

  While Detroit's Big Three wait to see what kind of financial assistance could come from Washington, they've announced a number of drastic new steps to help them survive.

  Two of the Big Three automakers are looking to the White House to save the industry from a threatened collapse they claim is just weeks away.

  In a sign of how perilous their situation is, Chrysler announced a month-long shut down at all 30 of its production plants in North America starting Friday.

  GM has also put the brakes on a plan to build a new assembly plant in Flint, Michigan.

  The future for tens of thousands of workers in this country is growing more uncertain.

  The White House is still in negotiations with GM and Chrysler.

  They are aware of how serious the situation is and believe they're close to making a deal.

  White House Press Secretary Dana Perino said, "the collapse of the auto industry would have a devastating impact on the auto industry."

  A possible deal could include: a $14 billion dollar lifeline from the financial industry rescue funds to keep Detroit afloat through the beginning of the year, or supervising a bankruptcy. 

  Ford, which has enough money to get through next year, is still planning to close ten of its plants for an extra week in January. 

  The economic slump is not just impacting American car makers.

  Citing a hit to profits, Toyota and Nissan announced cuts to production and temporary workers.

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