Shares on Wall Street rose more than 140 points higher this afternoon as America's largest carmakers prepared to present Congress with a restructuring plan to secure the industry's future.

The Dow Jones industrial average rose 143.28 points to 8,292.37 following steep losses yesterday, when the index lost nearly 680 points, when it emerged that the US economy had been in recession since December 2007.

Sterling rebounded from earlier declines, up at $1.5032 against the dollar. Yesterday the currency recorded its biggest one-day drop against the dollar since Black Wednesday in 1992, and this morning the pound remained depressed at $1.4798.

Today, the "Big Three" - Ford, Chrysler, and General Motors - are due to submit plans to Congress for their recovery, if they are granted financial support from the Government, later this afternoon.

Times Archive, 1980: Chrysler may need huge new loans to avert bankruptcy

The situation at Chrysler, according to informed sources, is desperate

• Times Archive, 1980: $567m loss by GM is America's worst

• Times Archive, 1971: Henry Ford and Detroit-style poker

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The market is also waiting for carmakers' US sales figures for November.

The stronger opening came in spite of an announcement from General Electric, which said today that it expects fourth quarter profits of between 50 cents and 52 cents per share, compared with its earlier estimate of 50 cents to 65 cents per share and said it was looking for ways to cut costs amid the persistent challenges of the current climate.

The FTSE 100 was down 12.05 points this afternoon at 4, 053.44.

US crude oil futures were up in New York this afternoon, after falling to a three-year low of below $48 a barrel in early trading. January Brent crude oil rose to $49.50 a barrel in New York.

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