The possible failure of the American auto industry could have repercussions far beyond the auto plants.

It could affect local dealerships.

The U.S. Senate rejected a bailout for the Big Three U.S. automakers last Thursday. By last weekend, the Bush administration indicated some of the $700 billion financial industry rescue package could be used to help General Motors and Chrysler survive through the end of the year.

"If Chrysler and Chevy fail, Pahrump's left without a new car franchise, and it's not the only town like that," said Don Trudeau, co-owner of Saitta-Trudeau Chrysler - Jeep - Dodge. "Small rural areas, they'll feel the effect of it more so than the large metro areas.

"If the manufacturers fail, we have a couple different choices: One is, we remain as a used-car store. That would certainly mean we would sell a lot less cars and employ a lot less people," he said.

There could also be employees thrown out of work, he said.

"We want to believe," said Mike Benedetto, general manager of Pahrump Valley Auto Plaza, "and we believe we're going to stand tall in Pahrump and be here for the long haul," he said.

Pahrump Valley Auto Plaza, which opened in April 2004, has 31 employees.

The notion of car manufacturers declaring bankruptcy raises a lot of negative connotations, Trudeau said, adding, "When you're talking about buying a car, you make a long-term commitment with that company."

Business is already off 50 percent at his dealership this year, Trudeau said.

Taxable sales for motor vehicle and parts dealers for the fiscal year ending June 30 were down 23.6 percent in Nye County from the year before, according to the Nevada Department of Taxation. In August, sales were down 30 percent from that same month in 2007.

"There's still money out there to lend. If you had somebody who was just barely getting a loan before, they're not getting a loan now. But people with good credit can still find money," Trudeau said.

Chrysler credit likes Pahrump because there have been so few delinquencies, Trudeau said. But he added, "We've definitely seen an uptick in the repossessions in the last year. Our deals traditionally have been 40 percent cash as opposed to a Vegas dealer, who was about 20 percent cash, even less. So Pahrump's definitely got a more conservative customer."

Dodge trucks continue to be good sellers in the Pahrump market, he said, though sales of those trucks are down 50 percent this year.

Saitta Trudeau was the first new car dealership to open in Pahrump, back in 2001.

Bill Heard shut down two dealerships in Las Vegas. Vista Chevrolet reopened but not the Decatur Street dealership.

Greg Heinrich, part of a group of five Nevada auto dealers who unsuccessfully lobbied U.S. Sen. John Ensign, R-Nev., to vote for the $14 billion loan bailout for the auto industry, warned his four dealerships -- which includes the Pahrump Valley Auto Plaza -- they could last only four to six months if GM failed.

Benedetto said the situation isn't that glum.

"That was his way of getting the message across in the Senate to Mr. Ensign. But basically, obviously, we need a little consumer confidence to come in and boost sales," Benedetto said. "Our ancillary services, our service and our parts department is picking up where our sales have dropped off."

Benedetto said sales have dropped in the range of 35 to 40 percent with the current economic downturn. But oddly enough, the percentage of used to new car sales has about levelled off, he said. Formerly, about 70 percent of the sales were used cars.

"We've seen our volume drop, just the amount of people walking in the door. But here in Pahrump, good credit, stable people. It's more consumer confidence, It's more them not trusting the system. We haven't experienced a big drop in credit here. Some of our lenders have dropped but we still have plenty of people who can guarantee car loans and we also have our credit approval, your in-house financing program," Benedetto said.

Some customers are taking advantage of rebates and falling gas prices to buy pickup trucks again, he said.

Heinrich told the Las Vegas Review-Journal, cars are a customer's second-biggest purchase. Few buyers would gamble on a bankrupt manufacturer.

Trudeau said car dealers would still honor warranties if they went bankrupt.

Senate Majority Leader, U.S. Sen. Harry Reid, D-Nev., lashed out at Republicans who shot down the loan plan, saying they are "more interested in settling scores than solving problems."

"Given the unhappy choice between a bridge loan and bankruptcy, Democrats have always believed that we must give the Big Three and the millions of Americans they employ every possible chance to succeed," Reid said. "By rejecting every good-faith bipartisan compromise -- including those from the White House and Sen. Bob Corker -- it is now abundantly clear that Republicans have no interest in keeping the Big Three from collapsing.

"Because Republicans failed to act, three million Americans are more likely than ever to lose their jobs and our economy is at risk of suffering even greater damage," he said.

Ensign said that by keeping the use of the $700 billion financial bailout package as a last option, the White House undermined any potential negotiations over a new auto bailout bill. He asked the White House to take that off the table and allow the Senate to continue negotiations on another bill.

Ensign said he also drafted a bill that would provide government backing to car warranties if the Big Three went bankrupt and provide debtor-in-possession financing.

The House bill would have set up a "car czar" to manage the auto industry.

"A car czar injects politics into a process that needs experts. If we are serious about making these companies stronger over the long term, we need to have experts make these decisions outside of Washington, D.C. politics. We owe it to the tax payers to be both responsible and effective," Ensign said.

Heinrich said last week he's optimistic a deal wll be approved.