US auto manufacturers are now lining up for government cash following the banking bailout.

The big three – Chrysler, General Motors and Ford – have warned they face collapse without help, which would mean the loss of millions of American jobs.

The Democrats are in support of a financial package for car makers and have proposed a $25 billion deal.

Supporters are hoping to amend the $700 billion financial bailout bill to include help for auto makers.

However, the Republicans are not keen on the proposition as Congress has already approved $25 billion in loans to the auto industry to help develop fuel-efficient vehicles.

If the proposal cannot get enough support, it may not even make it to a vote.

House Republican leader John Boehner said: “Spending billions of additional federal tax dollars with no promises to reform the root causes crippling automakers’ competitiveness around the world is neither fair to taxpayers nor sound fiscal policy.

“Why are Democratic leaders in Congress discussing an additional taxpayer-funded bailout on top of that $25 billion package instead of ensuring these loans are made available to the automakers as quickly as possible? And what assurances will Democrats give taxpayers about their chances of getting their auto bailout money back?”

Senior Democratic senator Christopher Dodd told reporters yesterday: “Right now, I don’t think there are the votes. I want to be careful of bringing up a proposition that might fail.”

US carmakers are heavily burdened with debt and are struggling in the face of slower car sales as the recession bites. General Motors admitted last week it may not have enough funds to last until the end of the year.