CHICAGO - As General Motors Corp. and Ford Motor Co. reported grim third-quarter earnings Friday, Michigan Gov. Jennifer Granholm warned that the state, just a few weeks into its fiscal year, already could face a deficit reaching up to $600 million.

In a series of moves aimed at bolstering the ailing state economy, Granholm last week requested federal aid for both U.S. automakers and the state, and said she would order budget cuts by the end of the year and release $150 million from the state treasury for banks to make loans to businesses and consumers.

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