Detroit’s three carmakers went to Washington last week hoping to get $34bn (€26bn, £23bn) of bridge financing to see them through 2009 as they undertook restructuring plans of their own making.

What they are now looking at is a pared-back $15bn lifeline in a far stricter bill that hangs a credible threat of liquidation over General Motors, Chrysler and Ford Motor early next year if they fail to right their businesses on the government’s terms and timetable.