The reported third quarter operating losses – nearly $7.2 billion combined - for General Motors Corp and Ford Motor Co are worse than what were being feared. This, according to an events expert, raises the possibility that one or both will run out of cash within the next year, thereby giving the shuddering economy yet another blow.

While GM posted a $4.2-billion operating loss, Ford reported loss of $2.98 billion. The two companies said their rate of cash burn had accelerated, as an extended slump in car sales raised questions about the future of the US auto industry.

Both companies said they would take aggressive steps to cut their costs by cutting production further and trimming more jobs.

A study released this week by the Center for Automotive Research in Ann Arbor, Mich., said 732,000 Americans work in vehicle or parts production. Hence, when the ripple effects are included, failure of the Detroit auto industry would eliminate 3 million jobs nationally in the first year and more in successive years.

The latest round of bad news from GM and Ford has increased pressure on Congress and the current and incoming administrations to offer the industry more financial help.

The officials of GM, Ford, Chrysler and the United Auto Workers Union met Thursday with congressional leaders seeking as much as $50 billion in new aid, over and above an existing $25-billion package of low-interest loans approved by Congress to help the carmakers meet tougher fuel-efficiency requirements.