Detroit Gets $17 Billion

Not everyone in Detroit is so happy. Rep. John Dingell, D-Mich., a staunch Capitol Hill ally of the automakers, applauded the government's bailout, but said "it is irresponsible during a time of economic crisis for the White House to insist that workers take further wage cuts on top of the historic concessions they have already made."

The administration's announcement comes barely a week after congressional talks to provide government assistance to the companies fell apart in the Senate. General Motors and Chrysler were relying on the Bush administration as their last and best hope for a bailout. Ford Motor, which had previous asked for a government-issued line of credit, was not seeking an immediate bridge loan.

Chrysler says the $4 billion loan will not affect its decision to idle all 30 of its factories until at least Jan. 19. The plant shutdown was intended to clear out excess dealer inventories at a time when consumers are not buying cars.

The action by the White House is drastic, but it also leaves open some important questions: To what extent will the incoming Obama administration alter the terms of the deal? When will the Treasury Department ask Congress for the remaining $350 in the TARP, which Treasury Secretary Henry Paulson has said will eventually be necessary? How will the loans get cash-strapped buyers back into dealer showrooms? And what happens if GM and Chrysler have to file for Chapter 11 bankruptcy three months from now?

These bridge loans give GM and Chrysler time to prepare for a bankruptcy, if that's what it comes to. But they've got an ally in the White House who doesn't want to see them take that route.

"The American people want the auto companies to succeed," said Bush. "And so do I."