Forget bailing out the auto industry. Nationalize it. Yank the companies away from the incompetent boobs who created this crisis. The last thing we need is taxpayer funds paying their golden parachutes.
Take over the companies and retool them to build hybrids, electric cars, you know the cars real Americans want to buy, but havn't been able to get American Made because the dumb jerks running the Big Three have resisted every attempt to madate better gas milage, and instead they keep hunkering down and building more SUV's that nobody wants.
Also put the plants to work buidling heavy equipment that we're going to need to fix the infrastructure of this country, and building public transit vehicles like buses, light rail and subway trains.
And then with the companies back in the black, the US govt. can get out of the auto business, and sell off the companies to responsible investors, and let the market decide once again.