The $14bn dollar bail out plan for the US automotive industry has failed to get enough support in the Senate.
The rescue plan collapsed after the Republican support failed to materialise when demands for the auto workers union to accept swift wage cuts was not met.
The news brought a sharp fall in share prices in Japan, Taiwan, South Korea and Australia, with further falls expected in Europe and on Wall street. The effect of a disorderly collapse of the American car market would have a huge effect on industry not only in the US, but around the world.
This news is comes at a bad time for the already beleaguered steel industry, for whom the automotive sector is a major market. It is estimated that for every job in the car industry, a further seven jobs depend indirectly upon them.
The automotive supply sector has already seen major job losses and company closures in the past few weeks and this news is likely to accelerate the rate of job losses.