Washington - A last-ditch effort to pass an emergency loan that would resuscitate the ailing US car industry fell apart late Thursday after negotiations collapsed in the Senate.

After hours of bargaining, Republicans and Democrats failed to agree on a compromise deal.

The bone of contention was the powerful United Auto Workers (UAW) union's refusal to agree to Republican demands for wage cuts and reduction in labour costs to the level of Japanese competitors operating in the US.

Washington  - Negotiations in the US Senate on a 14-billion- dollar emergency loan for the ailing car industry collapsed late Thursday, leaving the fate of General Motors Corp and Chrysler LLC uncertain.

The discussions failed after the United Auto Workers union refused to agree to Republican demands for wage cuts and reduction in labour costs to the level of Japanese competitors operating in the US.

"It's over with. I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight, said Senate Majority Leader Harry Reid, a Democrat.

He later said that there would be "no more work" on the bail-out until the "reconvening of the new Congress next year."

Washington  - Democratic congressional leaders held out hope Thursday that a compromise on an emergency loan for the US car industry was still possible, after another day of haggling with more skeptical conservative lawmakers.

The House of Representatives approved a 14-billion-dollar emergency loan for the car industry Wednesday night, imposing strict oversight rules in exchange for keeping General Motors Corp and Chrysler LLC out of bankruptcy at least until April.

But Senate Republicans vowed to oppose the same deal in the upper legislative chamber, where Democrats hold a much slimmer majority than in the House. They argued the legislation still provides the loan without forcing tougher restructuring moves on the companies.

Washington  - US president-elect Barack Obama Thursday called on Congress to prevent a collapse of the country's automotive industry, but Senate Republicans were almost certain to block a legislative deal.

The House of Representatives approved a 14-billion-dollar emergency loan for the car industry Wednesday night, a move that would keep General Motors Corp and Chrysler LLC out of bankruptcy at least for the coming few months.

The lowest ever sales in history has been experienced by the Indian automobile industry with overall domestic sales shrinking by 17.98% in the month of November 2008 since there was a huge decline in the commercial and passenger vehicle sales.

For the month of November, the total vehicle sales in the domestic market stood at 711,281 units as against 867,243 units in the corresponding month a year ago, claims the Society of Indian Automobile Manufacturers (SIAM).

Auto manufactures have started to slash prices of various vehicles following the recent excise duty cut, announced by the union government. Two-wheeler companies such as Hero Honda, Bajaj and Honda Motorcycles and Scooters India has slashed motor cycle prices in the range of Rs 1,000-2,000. Hindustan Motors also slashed price of the Ambassador by Rs 10,000-14,000.