The White House said a disorderly bankruptcy in the motor industry would be a huge blow which the US economy could not withstand.
Meanwhile General Motors said it was temporarily stopping some production.
And Honda is also to cut back output in North America.
GM, which has been pleading for an emergency government loan to avert collapse, said it would halt 30% of its North American production “in response to rapidly deteriorating market conditions”.
It saw vehicle sales fall 41% in November, when overall US car sales fell 26% industry wide.
The temporary shutdowns will affect 14 US factories as well as three in Canada and three in Mexico, reducing output by 250,000 vehicles in the first three months of 2009.
“The speed and severity of the US auto market’s decline has been unprecedented in recent weeks as consumers reel from the collapse of the financial markets and the resulting lack of credit for vehicle financing,” it added.
Earlier this year, the US approved a $700bn bail-out for the finance industry, known as the TARP programme.
It had previously been reluctant to use this money for other industries but White House spokeswoman Dana Perino said it would consider other options, including the use of the TARP program, to prevent a collapse of troubled automakers.
She added that it would be “irresponsible” to further damage the economy by allowing the Detroit car companies to fail.
“The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,” she added.
President-elect Barack Obama said he was disappointed that the Senate failed to act, adding that “millions of jobs rely directly or indirectly on a viable auto industry”.
The failure of the bail-out raises the prospect of huge job losses.
The Senate majority leader, Harry Reid, said he was “terribly disappointed” when it became clear the vote had collapsed, calling it “a loss for the country”.
“Millions of Americans, not only the auto workers but people who sell cars, car dealerships, people who work on cars are going to be directly impacted and affected.”
The deal would have given the Big Three carmakers access to emergency funding to help them cope with the sharp downturn in sales because of the global financial crisis.
General Motors and Chrysler have said they risk ruin without immediate aid. Ford says it may need funds in the future.
The bosses of the three firms had previously asked for $34bn from Congress.
They have all seen sales fall sharply this year in the US, partly reflecting an industry-wide fall, and partly because their large gas-guzzling vehicles are no longer what customers want.