Although the $700 billion bailout program passed in September by Congress is targeted at banks and financial institutions, the New York Times reported in a story published October 27, 2008 that the Bush administration is looking for ways to funnel emergency funds into the automotive industry, particularly to bolster the proposed General Motors merger with Chrysler.

Because the Big Three Detroit automakers all have financing arms and because the powers given to the Treasury Department under the bailout bill are sweeping, some in the administration believe that funds from the program can be made available to car companies. Others look to a $25 billion loan program created by Congress for the modernization of auto plants, while a third option would involve going back to Congress for specifically designated funds, a move that could take place immediately after the election on November 4.

Because the collapse of any of the major automakers would have far-reaching consequences in America and abroad, particular concern is directed toward facilitating the merger of GM and Chrysler, owned by Cerberus Capital management. GM, the largest automaker in the nation, has lost $18.8 billion in the first six months of 2008 and is spending more than $1 billion in cash each month with a reserve of just $21 billion in June. It is estimated that the company needs $5 billion to $10 billion in assistance to cover its immediate needs until a merger agreement can be reached.