divimg alt="" src="http://hits.guardian.co.uk/b/ss/guardiangu-feeds/1/H.15.1/45822?ns=guardianpageName=Business%3A+US+carmakers+rush+to+devise+recovery+plans+before+crucial+bail-out+talksch=Businessc3=The+Guardianc4=Automotive+industry+%28Business%29%2CUS+economy+%28Business%29%2CCredit+crunch+%28Business%29%2CGlobal+recession%2CGeneral+Motors%2CFord%2CUS+news%2CWorld+news%2CBusinessc5=Motoring%2CCredit+Crunch%2CNot+commercially+useful%2CBusiness+Markets%2CUS+Economyc6=Dan+Milmoc7=2008_12_01c8=1126596c9=articlec10=GUc11=Businessc12=Automotive+industryc13=c14=h2=GU%2FBusiness%2FAutomotive+industry" width="1" height="1" //divpThe big three Detroit car manufacturers - General Motors, Ford and Chrysler - were yesterday scrambling to complete new business plans before submitting their latest plea for a $25bn (pound;16bn) bail-out to Washington./ppThe carmakers must deliver restructuring proposals to Congress by tomorrow after being given a second chance following a disastrous appearance on Capitol Hill last month. Democratic leaders warned executives that a bail-out loan would not be forthcoming unless they produced a "credible restructuring plan"./ppGM, the largest US car manufacturer, is considering killing off brands and is sounding out creditors about a debt-for-equity swap to cut borrowings that total about $43.3bn, according to reports. The United Auto Workers union is also reportedly looking at dropping the "jobs bank" agreement that pays sacked employees for 48 weeks - a totem for some members of Congress who are loth to rescue the industry./pp"Nobody wants to throw money down a rathole," said Ron Gettelfinger, the UAW president, in an interview with CNN yesterday./ppThe big three are in dire trouble because of poor sales, high debts and cost bases that are less competitive than those of foreign-owned rivals. GM has warned that it could run out of cash early next year without a government bail-out, merger or asset sales and Ford, considered the strongest of the three, posted a third-quarter operating loss of $3bn as sales slumped. The most endangered of the three, Chrysler, burned through $3bn of cash in the third quarter of the year and has only $6bn left./ppThe chief executives of GM, Ford and Chrysler attempted to secure a $25bn bridging loan from Congress a fortnight ago but their plea was dismissed after it became apparent that the three had no new turnaround strategy. Speaker Nancy Pelosi and Harry Reid, the senate majority leader, gave the auto manufacturers until tomorrow to submit restructuring plans that would save the industry while "protecting taxpayer investments"./ppThe US electorate and politicians are becoming resentful of the bail-outs of the financial sector, which top $1tn, so a rescue of the big three is likely to face tough scrutiny. However, the auto industry accounts for one in 10 US jobs with the three manufacturers employing 239,000 people directly. /ppMitt Romney, a former candidate for the Republican presidential nomination, argued last month that the big three should consider a "managed bankruptcy". Under this proposal the companies would enter chapter 11 bankruptcy protection, which would shield them from creditors. The government would guarantee post-bankruptcy financing and stand by car warranties that would be threatened in a conventional administration process. The carmakers would also be able to restructure their workforce, pension and property costs during the process, Romney said. /ppDetroit executives' concern over a managed bankruptcy is that sales would plummet because of fears over obtaining spare parts and the companies' ability to fulfil warranties. GM, Ford and Chrysler did not return calls yesterday./pdiv style="float: left; margin-right: 10px; margin-bottom: 10px;"ullia href="http://www.guardian.co.uk/business/automotive"Automotive industry/a/lilia href="http://www.guardian.co.uk/business/useconomy"US economy/a/lilia href="http://www.guardian.co.uk/business/creditcrunch"Credit crunch/a/lilia href="http://www.guardian.co.uk/business/globalrecession"Global recession/a/lilia href="http://www.guardian.co.uk/business/generalmotors"General Motors/a/lilia href="http://www.guardian.co.uk/business/ford"Ford/a/lilia href="http://www.guardian.co.uk/world/usa"United States/a/li/ul/diva href="http://www.guardian.co.uk"guardian.co.uk/a copy; Guardian News Media Limited 2008 | Use of this content is subject to our a href="http://users.guardian.co.uk/help/article/0,,933909,00.html"Terms Conditions/a | a href="http://www.guardian.co.uk/webfeeds/1,,1309488,00.html"More Feeds/a pa href="http://feedads.googleadservices.com/~at/2Ik0i-kMXfzlw_wHjVqBfujlE54/a"img src="http://feedads.googleadservices.com/~at/2Ik0i-kMXfzlw_wHjVqBfujlE54/i" border="0" ismap="true"/img/a/p