UPDATE 1-Six U.S. governors urge support for auto industry

(Adds quotes from letter, background on state of industry)

DETROIT, Oct 30 (Reuters) - The governors of six states urged the U.S. Treasury and the Federal Reserve to take "immediate action" to prevent a deepening crisis for the auto industry that would become "an unmanageable disaster" for state governments, in a letter released on Thursday.

"While all sectors of the economy are experiencing difficult times, the automotive industry is particularly challenged," the letter said. "As a result, the financial well-being of other major industries and millions of American citizens are at risk. Immediate action is needed to address this crisis."

The letter to Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke was signed by Michigan Gov. Jennifer Granholm and the governors of New York, Ohio, Kentucky, Delaware and South Dakota.

A copy of the letter was released by Granholm's office.

The letter comes at a time when General Motors Corp has been lobbying for up to $10 billion in government support to allow it to move forward with a deal to acquire Chrysler LLC from Cerberus Capital Management, according to people with knowledge of those private talks.

All three U.S. automakers, including Ford Motor Co, have faced increased scrutiny over their cash positions by creditors and investors who have questioned whether they have the liquidity that they need to ride out a slump in U.S. auto sales seen continuing through 2009.

U.S. auto sales dropped 27 percent from a year earlier in September. In their letter, the governors said industry sales could drop more than 30 percent in October to the lowest level since 1983.

"The auto industry; their network of suppliers, vendors, dealers and other businesses and the communities that rely on those businesses face unimaginable challenges -- challenges we urge you to address," the letter said.

Without federal assistance, the pressure from increased unemployment claims and diminished tax revenue from the "economic crisis" facing automakers "threatens to create an unmanageable disaster at the state level," the letter said.

In addition to Granholm, the letter was signed by Kentucky Gov. Steve Beshear, Ohio Gov. Ted Strickland, South Dakota Gov. Mike Rounds, New York Gov. David Paterson and Delaware Gov. Ruth Ann Minner.

Rounds is a Republican. The other five governors are Democrats. (Reporting by Kevin Krolicki; Editing by Phil Berlowitz)