US motor industry warns of catastrophe if big player falls

Advocates for US car makers are warning that the collapse of the Big Three manufacturers – or even just General Motors – could set off a catastrophic chain reaction in the economy, eliminating up to three million jobs and depriving governments of more than €113bn in tax revenue.

Industry supporters are offering such grim predictions as Congress considers whether to bail out the nation’s largest car makers, which are struggling to survive the steepest economic slide in decades.