CNN

FROM CNN's Jack Cafferty:

The popular "cash for clunkers" program is out of cash; and its fate now lies in the hands of the Senate. The initial pool for rebates to trade in gas guzzlers was $1 billion; and the Obama administration says it will end the program next week if they don't get more money. The House already voted for an additional $2 billion.

So far, the cash for clunkers program has led to the sale of 250,000 new vehicles. It helped bring Ford its first monthly sales increase in two-years. Also, the administration says that 62-percent of the traded-in vehicles are trucks; and people are replacing them with cars that get better mileage.

Former Federal Reserve Chairman Alan Greenspan says car and truck building was rebounding even before this program started; but he adds that the "extraordinary response" shows confidence in the economy is picking up.

Meanwhile - Republicans are asking how the government will be able to handle massive health care reform if they can't manage a smaller-scale program like this. Senator Jim Demint - one of the president's toughest critics these days - says it's an example of the "stupidity coming out of Washington right now." Senator John McCain has said he would lead a filibuster against the bill for the additional $2 billion.

Other critics say the rebates are mostly helping out middle-class people who would have eventually bought a new car anyway...

Here’s my question to you: Should the Senate approve another $2 billion for the "cash for clunkers" program?

Interested to know which ones made it on air?

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FROM CNN's Jack Cafferty:

The "cash for clunkers" program is a win-win situation for everyone. That's according to the government - which says the $1 billion plan will help the environment, automakers and drivers who want to trade up out of their old cars.

Cars bought through the program must get at least 22 miles per gallon, like this Ford Focus. Rules are different for trucks.

Under the plan - taxpayer money will be used to give people a credit of up to $4,500 to replace their gas guzzlers. The idea is they use that money to buy certain new vehicles that are more fuel efficient.

The traded-in cars have to be less than 25-years-old; and their titles can't have any liens.

The program already has about 16,000 registered auto dealers signed on; and some say showroom traffic is already up since the program's official start on July 1.

About 250,000 cars are expected to be junked through this program before it ends on November 1. This will hopefully jump start auto sales - which have been down about 35-percent across the industry.

But not everyone is so sure that "cash for clunkers" is a good idea. Under the plan - the gas guzzlers must be destroyed. Some auto recyclers say they'll lose a lot of money in sales from old engines and other car parts.

They also say the program will hurt lower-income buyers who can't afford a new car - even with the government credit, and they say that destroying cars will drive up prices for spare parts.

Here’s my question to you: Is cash for clunkers a good idea?

Interested to know which ones made it on air?

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President Obama's 'car czar' Edward Montgomery tours a GM plant in Flint, Mich. in May. (PHOTO CREDIT: BILL PUGLIANO/GETTY IMAGES)

FROM CNN's Jack Cafferty:

When it comes to restructuring the auto industry, the Obama administration is knee-deep.

General Motors is expected to follow in the footsteps of Chrysler, and file for bankruptcy in the coming days. It would be the largest industrial bankruptcy in U.S. history.

G.M. says a committee of bondholders has agreed to a new deal offered by the government. It would erase GM's unsecured debt in exchange for company stock.

If the deal goes through, the government – which has already lent GM close to $20 billion – could have a 72% stake in the company and provide billions more in financing for General Motors to keep operating while being reorganized.

The administration's goal for G.M. is to return to profitability. The White House reportedly wants to play "as minimal" a role and "exit" the investment as soon as they possibly can. But the risks for taxpayers are huge, when you consider U.S. auto sales are near their lowest level in 27 years.

Not everyone is sure the level of the Obama administration's involvement is a good idea.

A poll taken in Michigan by Detroit News/WXYZ shows 42% of those surveyed say the president's role has hurt the domestic automakers, while 39% say he's been helpful.

Here’s my question to you: Is the government getting too involved in the auto industry?

Interested to know which ones made it on air?

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(PHOTO CREDIT: JIM WATSON/AFP/GETTY IMAGES)

FROM CNN's Jack Cafferty:

If you're looking for a new set of wheels, there are lots of deals out there - as two of the big three automakers close thousands of dealerships around the country.

789 Chrysler lots have a deadline of June 9 to unload more than 40,000 cars and trucks. The dealers have to sell the Chryslers, Dodges and Jeeps before then - or risk losing thousands of dollars.

Chrysler, which has filed for bankruptcy, doesn't have the money to buy back the vehicles. But the company says that dealers being cut will get warranty reimbursement and sales incentives like rebates and low-interest financing until June 9. After that, they won't get either... and that's why dealers are in a hurry to sell, even if it's at a loss.

Over at General Motors, the situation isn't quite as bad - at least not yet. Although the company is cutting 1,100 dealers, GM isn't in bankruptcy yet so dealers have more options. They also have more time to sell their cars - and the company is still required to buy back some of the cars and trucks.

Experts say before going to a dealership, you should find out about incentives and other deals, and make a low-ball offer. Of course - People can wait until the deadline gets closer and dealers are perhaps even more desperate - but keep in mind that inventory could be lower then and you may not get your first choice.

Here’s my question to you: Is now the time to buy a Chrysler or GM car?

Interested to know which ones made it on air?

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(PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

With President Obama's tough talk for General Motors and Chrysler, a bankruptcy of one or both is now a distinct possibility these days.

If it happens, the ripple effect on the U.S. economy would be serious. Everyone from car owners to dealers, autoworkers, suppliers, lenders - and yes, the American taxpayer would be affected.

The government insists it will stand behind the warranties for new GM and Chrysler cars; but that won't help someone trying to sell a discontinued model. And if either company goes out of business, it could create a shortage of new cars; which would mean it could cost a lot more to buy one.

For Dealerships, bankruptcy could create a problem getting financing to buy the cars they hold in inventory. The government might have to step in here too, forcing taxpayers to dig deeper.

Suppliers could also be in trouble. Only those suppliers which a court determines to be "critical vendors" could get back money. As for investors - forget it. In the case of GM, the shares would become pretty much worthless.

Finally it's possible bankruptcy would cost more than the $21.6 billion the car companies are asking for to stay out of bankruptcy.

Not a pretty situation however you slice it.

Here’s my question to you: What would it mean if General Motors or Chrysler or both go bankrupt?

Interested to know which ones made it on air?

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FROM CNN's Jack Cafferty:

When it comes to President Obama's plans for the struggling car companies, many autoworkers say the administration is being much harder on them than the many failing banks.

Some auto workers have called ousted GM CEO Rick Wagoner (pictured) a sacrificial lamb, scapegoat, and fall guy.

The president of one United Auto Workers chapter calls it the "age-old Wall Street vs. Main Street smackdown," adding that there's lots of money available to banks that are "apparently too big to fail, but they're also too big to be responsible." Meanwhile he says auto manufacturing and middle class jobs have to meet a higher standard.

Many workers even sympathize with General Motors CEO Rick Wagoner, calling him a sacrificial lamb, scapegoat, and fall guy. They believe the government hasn't given the same harsh terms to insurance giant AIG or the banks in which it's taken an ownership stake. And they're absolutely right.

Michigan Governor Jennifer Granholm calls President Obama's moves quote "a bit of tough love," and says she hopes the financial industry gets "as tough a scrutiny as the auto industry has."

Also, a piece in 'Politico' asks why the banks get carrots while the auto industry gets the heavy stick. They say the White House believes it gave both GM and Chrysler a chance to prove they could come up with a plan for survival, and they didn't.

Also, although the collapse of the American auto industry would devastate workers, suppliers and executives, it probably wouldn't destroy the broader U.S. economy, like the collapse of certain financial institutions could. And since the public seems to have bailout fatigue, this was a chance for the president to show he's not willing to stick the taxpayer with the bill once again.

Here's my question to you: Some autoworkers say President Obama treated car companies worse than Wall Street. Are they right?

Interested to know which ones made it on air?

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(PHOTO CREDIT: BILL PUGLIANO/GETTY IMAGES)

FROM CNN's Jack Cafferty:

The White House continues to drag its feet on a bailout for the auto industry in the wake of failed attempts to get help from Congress. The impasse came when the United Auto Workers Union refused to agree to wage cuts.

This morning President Bush said he still hasn't decided what to do but his press secretary later said he's considering an orderly bankruptcy. Of course the point of the automakers begging for a bailout was to prevent bankruptcy and the collapse of the industry.

Chrysler announced plans to close down all 30 of its manufacturing plants for one month effective tomorrow. Their finance division says it may have to stop making loans to dealers.

Ford had previously announced their own plans to close 10 factories to cut first quarter production in 2009. In the meantime, the Wall Street Journal reports that GM and Chrysler are rethinking the possibility of a merger, although sources tell CNN that is not true.

Here’s my question to you: Is it already too late to save the auto industry in its present form?

Interested to know which ones made it on air?

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From CNN's Jack Cafferty:

The fate of the U.S. auto industry is still unknown. The $14-billion bailout bill died in the Senate after a dispute over union wage cuts.

Senate Republicans said the bill wouldn't do enough to put automakers back on their feet. They wanted the Auto Workers Union to accept a lower pay and benefits package similar to what employees make at U.S. factories where Japanese cars are produced. The union balked.

In an unusual move, Labor and Industry representatives met with lawmakers at the Capitol last night to try to make it work. But eventually the union walked away unwilling to comply with the demands.

The industry still needs cash to avoid collapse.

General Motors said today they will cut 250,000 cars from their first quarter production schedule by closing 20 factories.

President-elect Obama asked the White House to intervene and the White House Press Secretary said all options are under consideration, including the possibility of dipping into the $700-billion Troubled Assets Recovery Program.

So our question is: Should the United Auto Workers Union have accepted wage cuts to save the bailout?

Tune in to the Situation Room at 4pm to see if Jack reads your answer on the air.

And we love to know where you’re writing from, so please include your city and state with your comment

FROM CNN's Jack Cafferty:

There's a deal, at least, in principle, for a $14 billion auto industry bailout with strings attached.

The Big 3 have three months to restructure under the watchful eyes, presumably, of a government "car czar." So that's it… a few billion dollars and government interference and Detroit will be just fine, right?

This car czar, to be appointed by the President, will write the guidelines for the $14 billion loans. The appointee will also set the terms for the loans and oversee the restructuring of the auto makers who take the money. There will supposedly be a report to Congress every 15 days.

In short, this person will have extraordinary power.

The deal is a short-term solution that is supposed to give GM and Chrysler enough cash to avoid filing for bankruptcy, at least until President-elect Barack Obama takes over and can negotiate a long-term solution. Ford apparently has enough cash on hand and won't need a loan, at least not yet.

If the government does as good a job with this as it's done with overseeing the $700 billion bailout, well… you get the idea.

Some are calling the arrangement "Bankruptcy Light"... saying it avoids the dangers of bankruptcy that scare consumers away from buying products, in this case cars.

Here’s my question to you: Is a government "Car Czar" the answer to Detroit's problems?

Interested to know which ones made it on air?

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GM CEO Richard Wagoner, UAW President Ron Gettelfinger, Ford CEO Alan Mulally and CEO of Chrysler Robert Nardelli were back on Capitol Hill today. (PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

A top executive at Chrysler, Vice Chairman Jim Press, is warning that the failure of just one of the Big Three automakers could drive the U.S. economy into a depression.

The CEOs of Chrysler, Ford and GM were back on Capitol Hill today asking for $34 billion in aid, just two weeks after they asked for $25 billion and were shot down.

Ford CEO Alan Mulally quoted an estimate from Goldman Sachs during his testimony that said the failures of the three companies could cost the U.S. economy up to $1 trillion.

Sure the companies need cash. And sure they directly provide jobs to 355,000 workers. And an additional 4.5 million jobs in related industries. But there are real questions about whether we would be throwing good money after bad. Detroit has failed to keep up with a changing industry for years, despite the handwriting that was clearly put on the wall by Toyota and Honda, among others. American cars come with legacy costs unrivaled anywhere in the industry. Sales figures released this week were terrible. GM down 41 percent, Ford down 31 percent. Congress is grappling with whether the cure is worse than the disease.

Here’s my question to you: Will the loss of any one of the Big Three auto companies lead to a depression?

Interested to know which ones made it on air?

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