I don't know where I stand in regards to bailing out the ailing American auto industry.
On one hand, it looks to me like you are throwing taxpayer money away at three companies that are bound to go under sooner rather than later, due to poor business practices, the current market conditions, the credit crunch, and the fact that their industry landscape has dramatically changed due to Toyota, Honda, Volkswagen's market share - or I should say, market dominance. What usually happens when another competitor puts a superior product on the market and utilizes savvier business practices when it comes to suppliers, laborers, and health insurance? Well, in a free market economy, the competition either rises to the occasion and develops a better product OR they collapse and go under.
On the other hand, one study roughly estimates that 3 million workers are directly or indirectly tied to the Detroit auto industry. That is a lot of people. A lot of people who could possibly lose their jobs if some cash isn't driven into the industry (no pun intended).
It's a difficult conundrum. For a good balanced view of the problem, click on the article link below. I believe that the article author does a good job of balancing both the pros and cons of the problem and clearly demonstrates that there is no easy answer to this very real problem.