The end of the road for U.S. carmakers?

"There's hardly a congressional district in the nation that isn't affected by the Big Three," said Kildee, the son of a UAW member who helped pass the $1.5-billion bailout of Chrysler in 1979. He said he'd push Congress to fast-track disbursement of the $25 billion in guaranteed loans and ask for $25 billion more. "It's not just the auto industry we're helping; it's the entire industry of this country."

Michigan would be the epicenter of an automaker collapse. The state already has the second-highest unemployment rate in the country, 8.7%, compared with 6.1% nationwide. After years of job losses, much of the workforce has migrated elsewhere: Detroit's population is now barely 900,000, down from 1.8 million in 1950. Recent estimates suggest the state could lose 60,000 more jobs should one of the Big Three fall.

In the wake of the federal bailouts of Wall Street and insurer American International Group Inc., experts feel little doubt that some sort of government aid to carmakers will be forthcoming. With GM and Ford spending cash at a rate of $1 billion a month, it remains to be seen whether an infusion of taxpayer dollars will stop the bleeding. Economist Gregory said any bailout might be pouring money down a hole.

"The damage to the public psyche of losing GM, Ford or Chrysler is incalculable, and the effect on whatever is left of the Rust Belt will be even worse," he said.

"But the truth is, our economy doesn't depend on cars, not anymore. The only question is how painful the transition will be."

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ken.bensinger@latimes.com