Many executives said the actions that are taken -- or not taken -- may set the tone for months to come, perhaps longer. 'If the bill doesn't pass, and you see chaos in the credit markets, it'll have some impact on 2009,' said General Motors Corp. President Fritz Henderson. He said he expected next year to be a weak one for U.S. auto sales even if the bailout is approved. The passage or failure of the bill will have repercussions in Europe as well. 'These days, economies are connected to each other,' said Stefan Jacoby, president of Volkswagen AG's U.S. operations. 'What happens in the United States has a direct impact on other markets as well.' The U.S. Senate approved a $700 billion package Wednesday night that included inducements to win support in the House, which had rejected an earlier version. 'I won't be subtle,' said new Volvo CEO Stephen Odell. 'I bounced on my bed this morning when I heard that it was approved.' Even before the financial turmoil reached a crisis point, Europe's auto market was weakening. Spain is struggling with a property slump and Ireland is in recession. In the latest available figures, German car sales were down 10.4 percent in August, Irish sales fell 46.1 percent, Italian car sales were down 26.4 percent and British car sales declined 18.6 percent. U.S. auto sales slumped 26.6 percent in September. 'These are numbers we've never seen in mature markets,' Ghosn told reporters. Ghosn said the bailout plan may not be sufficient to fix the problems in the U.S. financial system, but it's an essential step. 'It's important because psychologically it means there's an end, or a perceived end, to the problem.' By contrast with previous auto industry slumps, the current downturn also is affecting luxury car manufacturers, which are traditionally more resilient than mass-market brands. Daimler AG and BMW both suffered double-digit declines in Europe in August, falling more than the market as a whole. 'The guy with the bonus on Wall Street or in the City (London's financial district) who bought a Porsche might not do that now,' said Daimler CEO Dieter Zetsche. 'Same for the realtor.' In the midst of this downturn, auto companies are struggling with stricter and costly emissions regulations in the United States and Europe. But a measure of relief granted to the U.S. auto industry has aroused concern among foreign manufacturers. Congress has approved $25 billion in low-cost loans to help automakers retool to make their products more fuel-efficient, but European automakers are bothered by reports of the loan terms. 'From the way it looks now, we think it could be discriminatory to the foreign manufacturers,' Jacoby said, citing reports that only foreign companies with 20 years or more U.S. production experience would be considered. 'That looks like it would be tailor-made for American companies.' Zetsche said he didn't know the terms, which are being drafted by the U.S. Department of Energy. 'If that would be defined as money going to Chrysler, GM, Ford, certainly we'd have to look at whether this is a competitive distortion,' he said. Ghosn suggested that perhaps the European Commission should consider a similar loan program for Europe's automakers to help them reach tough new carbon-dioxide emission targets. Carl-Peter Forster, president of GM Europe, said Europe's carmakers were facing increasingly despondent consumers and called on governments to respond. 'At the EU level, and within the political leadership of individual countries, action must be taken to stimulate the economy, relieve the credit crunch and restore consumer confidence. Only then will consumers have the means -- and the confidence -- to invest in a new automobile,' he said. You can reach Christine Tierney at (313) 222-1463 or ctierneydteom.