Executives from Detroit’s “Big Three” auto companies – General Motors Corp. (GM), Ford Motor Co. (F), and Chrysler LLC – yesterday (Tuesday) joined Congressional Democrats on Capitol Hill to make the case for an industry-wide bailout that could spare their troubled companies from totally collapsing. Detroit’s bigwigs have been met with considerable resistance so far, but will continue to make their case today and into the New Year.

America’s two leading auto manufacturers, Ford Motor Co. (F) and General Motors Corp. (GM), reported heavy third-quarter losses Friday and are under a severe liquidity strain. Both are seeking emergency loans from governments in the United States and Europe. 

The U.S. government is looking for ways to facilitate a merger between General Motors Corp. (GM) and Chrysler LLC, in the hopes of keeping the once vibrant industry afloat during a time of crisis. But Uncle Sam’s credit card is close to maxed out and a bailout for the auto industry could open the door for other troubled industries to come calling.

Shares of Ford Motor Co. (F) and General Motors Corp. (GM) posted gains yesterday (Tuesday) on speculation that consolidation in the U.S. domestic auto industry could be the struggling sector’s saving grace.Over the last three trading sessions, Ford shares are up almost 18%, while GM shares are up over 37% on reports of possible merger talks and asset sales.

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