"Republican senators have just delivered a fierce slap at three million workers across America," Granholm said in a statement.
"Their no vote is an astounding blow," she said. "They have chosen to ignore the livelihood of three million Americans, three million families, and in the process have chosen to drive the American manufacturing industry -- and perhaps the American economy -- into the ground.
"A nation without a strong manufacturing sector is a nation without a viable defense sector," she said, alluding, perhaps, to automakers who turned out tanks during World War II.
"This is a shameful day, a day we will not forget," she said.
Granholm called on President George W. Bush to step in.
Bush indicated Friday that he would tap into the $700 billion financial bailout fund to help carmakers, MSNBC reported.
Notable deaths of 2014 [PHOTOS]