A deal with the US Congress to help America’s failing car industry will “very likely” be reached, the White House said today.

The chief executive of General Motors apologised for asking for US taxpayers' money today as the Big Three of the American auto industry prepared to plead with the US Congress for more than $34bn (€26bn) in loans.

Top executives of the big three American carmakers will ask the US Congress for more than $34bn (€26.1bn) in loans today as two of them battle to survive beyond the end of the month.

The US has been rocked by the fastest weekly rise in unemployment in 16 years.

The three biggest US carmakers pleaded with Congress for a $25bn (€19.7bn) lifeline to save their once-proud companies from collapse, warning of broader peril for the American economy as well.

General Motors, the largest US car manufacturer, warned today that it may run out of money by the end of the year after piling up billions in third-quarter losses and burning through cash at an alarming rate. Ford sustained heavy losses, too.

Concerns over North Korea’s nuclear ambitions and record oil prices sent stocks lower today and added to Wall Street’s worries about the economy and interest rates.

General Motors, pounded by declining sales and rising health care costs, said it would cut more than a quarter of its North American manufacturing jobs and close 12 facilities by 2008.

General Motors will cut 30,000 jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand and position the world’s biggest carmaker to start making money again after absorbing nearly €3.4bn in losses so far this year.

Stocks surged higher today after new data soothed inflation concerns and the price of oil tumbled to its lowest level in five months. The advance carried the Nasdaq composite index to a new 52-week high.

Wall Street gave up a substantial early gain and staggered to a mixed finish today after a Federal Reserve official warned that interest rates might continue to climb.

General Motors has denied an online report that the US car maker and Japanese giant Toyota are in talks about a possible technology-sharing pact that could result in a quicker, wider offering of petrol-electric hybrid vehicles.

Stocks managed to squeeze out modest gains in a volatile session Monday as crude oil futures, which briefly topped $US58 per barrel in early trading, settled lower.

The parent of car maker Vauxhall today warned it would fall into the red in the first three months of this year after sales and prices in North America took a dive.

Rupert Murdoch’s News Corporation has agreed to acquire control of Hughes Electronics Corp and its DirecTV service, America’s largest satellite television provider, in a $6.6bn (€6bn) cash and stock deal.

Union leaders say they are ready to call for strikes at Vauxhall after they failed to secure a reprieve for a factory threatened with closure.

Union leaders say they are ready to call for strikes at Vauxhall after they failed to secure a reprieve for a factory threatened with closure.