US motor firm bosses are appealing for a $25 billion (£16.7bn) bail-out to prevent the collapse of their industry.

The manufacturers warned Congress they were teetering on the brink of disaster and in desperate need of a financial rescue package.

Chrysler boss Robert Nardelli told the Senate Banking Committee: "We are asking for assistance for one reason: to address the devastating auto industry recession caused by our nation's financial meltdown."

The weakened economy and global credit crisis pushed the US government into bailing out companies including insurer American International Group Inc, investment bank Bear Stearns and mortgage companies Fannie Mae and Freddie Mac.

Ford CEO Alan Mulally said: "Now, we believe we must join our competitors asking for your support to gain access to an industry bridge loan to help us navigate through this difficult economic crisis.

"Is there a competitive and sustainable future for our domestic automobile industry? Is a government bridge loan, through these difficult economic times, better for our country than inaction? I believe the answer to both of these is yes."

Rick Wagoner, CEO of General Motors, told the committee that failure of the US car making industry would be "catastrophic".

But sympathy for the industry at the hearing was sparse.

Chairman of the Senate Banking Committee, Christopher Dodd said the industry was "seeking treatment for wounds that were largely self-inflicted."

However he conceded that hundreds of thousands of workers would lose their jobs if the companies were allowed to collapse.

Republican Senator Mike Enzi, also complained that the larger financial crisis was not the only reason the car manufacturing industry found itself in trouble.

The new rescue plan appeared stalled in Congress, opposed by Republicans and the Bush administration, who don't want to dip into the Treasury Department's $700 billion (£467bn) financial bail-out program to come up with the $25 billion (£16.7bn) package.

Congressional leaders worked behind the scenes in an effort to hammer out a compromise that could speed some aid to the car makers before year's end.

But the outlook seemed poor as Majority Leader Steny Hoyer said Congress might have to return in December - rather than adjourning for the year this week, as expected - to push through a car manufacturing industry bailout.

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