US Car giants lobby the White House (and pawn the shop)

From the BBC

Mr Bush met bosses from DaimlerChrysler Ford and GM, all struggling against Asian rivals, to discuss concerns over growing imports and health costs.

The companies, which spend more on health costs than on steel, want action to combat the weak Japanese yen.

The Financial Times adds:

Toyota's report last week of record third-quarter profits has fuelled the Detroit carmakers' accusations that Japanese and South Korean exporters are benefiting from currency manipulation by their governments. The three companies' chief economists met senior US Treasury officials recently to underline their concern.

UPDATE: George in 740 writes with some further reporting from the Wall Street Journal indicating the nature of the financial crises this firms are beginning to face:

GM and Ford, Hungry for Cash,
Pledge Assets to Secure Loans
By JEFFREY C. MCCRACKEN, JOHN D. STOLL and JOHN D. MCKINNON
November 15, 2006; Page A1

Facing a deep financial crisis, Detroit's two top auto makers have had to pledge some of their most essential assets -- such as factories and equipment -- as collateral to win badly needed new loans.

Now their depressed credit ratings are pushing the two auto makers to new sources of financing. GM, which posted a $10.6 billion loss last year, in July extended a credit line from a syndicate of banks under new terms that give the company a $4.6 billion revolving loan backed by North American assets including inventory, plants and property.

George comments that given recent political re-alignments "... I think it might be safe to say that would be tempted to put forth some form of protection in future legislation.

The question is …is there a right way to do this? We have discussed the implications of distorting the market. Accepting the arguments and policies we have discussed …If you start legislating protectionist measures it only delays the reforms that the companies in the auto industry need in order to be competitive again. ... I know, this is never a popular move and not likely to happen given the next two years and upcoming Presidential race but a thought at any rate ...[but] ...are there any cases where a developed economy made the conscious decision to allow an industry, once large and profitable, to decline so that it could shift resources to more profitable production?"