Shares in US car giant General Motors plummeted another 15% to a 65-year low at one point this afternoon.
The falls extended recent steep declines, which are due to concerns that the car maker's cash holdings might fall below the necessary minimum during the first quarter.
Shares of other car makers and parts suppliers also declined amid increasing concerns over whether the industry could survive a deep downturn in US car sales.
Credit analysts at JPMorgan said GM had several options, but added that its short-term survival would require the help of the US government, the company's suppliers, or both.
While government aid would decrease the risk of a bankruptcy, analysts have warned that any assistance would come at a significant cost to existing shareholders.
The White House said on Tuesday it was open to considering any proposals from Congress to accelerate loans to the US car industry from an already-approved $25 billion package.
GM shares have lost nearly 40% since Friday when the company reported a deeper than expected third-quarter loss. GM announced additional steps to increase liquidity, but said that even with those moves, liquidity would be at or near the minimum needed to run its business through the rest of 2008 and would fall significantly short of the minimum needed during the first two quarters of next year.
Meanwhile, GM's chief executive has said the company is in such dire financial straits that it needs to line up an aid package before president-elect Barack Obama takes office in January.
Rick Wagoner told Automotive News that the issue 'needs to be addressed urgently', adding that now is the time to 'overshoot, not undershoot' the level of assistance.
He said GM was willing to offer the US government preferred stock, speed up the introduction of fuel-efficient vehicles and set limits on executive pay in exchange for financial aid.
But Wagoner did not think it would be 'a very smart move' for him to resign. 'It's not clear to me what purpose would be served,' he said.
