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→Auto crisis: update
Equally serious is the plight of the parts makers--who actually do most of the factory work that goes into cars. "The failure of a few key suppliers could have brought the entire industry to its knees," said the president of the Original Equipment Suppliers Association, where a third of the membership reported that it would face severe financial distress in the first quarter. The government is giving $5 billion in aid to this sector.<ref> Kendra Marr and Peter Whoriskey, "Auto Parts Makers Get $5 Billion Lifeline: U.S. Aid Boosts Hopes for the Entire Industry," [http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031901597.html?hpid=topnews ''Washington Post'' Mar. 20, 2009]</ref>
Equally serious is the plight of the parts makers--who actually do most of the factory work that goes into cars. "The failure of a few key suppliers could have brought the entire industry to its knees," said the president of the Original Equipment Suppliers Association, where a third of the membership reported that it would face severe financial distress in the first quarter. The government is giving $5 billion in aid to this sector.<ref> Kendra Marr and Peter Whoriskey, "Auto Parts Makers Get $5 Billion Lifeline: U.S. Aid Boosts Hopes for the Entire Industry," [http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031901597.html?hpid=topnews ''Washington Post'' Mar. 20, 2009]</ref>
On March 29 President Obama forced the head of GM to resign, and on March 30 issued a do-or-die ultimatum for the struggling industry, demanding strict financial standards that the carmakers must meet to get more government aid and declaring that their industry must survive because it is "like no other, an emblem of the American spirit." He demanded that Chrysler form a partnership with the Italian automaker Fiat within 30 days. He did not threaten Ford, which has not asked for federal aid. He did not offer relief from the high mileage standards on which Detroit has consistently fallen behind Asian competitors. Obama asked Congress to offer cash subsidies for new car buyers, especially those who turn in old gas guzzlers (which will be scrapped). The stock market promptly plunged 3.6%.
===Bankruptcy scenario===
===Bankruptcy scenario===