Bail-out for (former) Big Three or bail-out for auto industry?

So, FG, Ford, and Chrysler have asked for government bail-out grants and loans.

How does this work. Well, car dealerships are given government bail-out grants and loans to buy vehicles from the Big Three to stock their showrooms with cars no one is buying. GM, Ford, and Chrysler are given government bail-out grants and loans to pay the wages of the workers and buy the materials to build the cars to stock the showrooms of dealerships with cars no one is buying.

Hmmmmm, does not seem right to me.

Let us look at the situation from the other end.

Car buyers are not buying because they cannot obtain financing due to the current credit crisis; if they can, they are not risking it because of their own precarious situation; and finally because the showrooms are stocked with cars no one wants.

So how do we rescue the industry?

Create a short list of desirable cars. Desirable because of fuel economy, styling, features, ... Make government-backed bank loans to car buyers meeting certain conditions. Tailor the loan payments to the car buyer.

For example, interest free for anyone trading in an ancient, gas-guzzling, oil-burning, clunker. Low or no interest for people below a certain income level but above some threshold for car ownership and maintenance. and so on ...

With car buying loans flowing, dealerships will be full, and cars will be flying off the showroom floor. But only for desirable cars. i.e., if GM, Ford, and Chrysler cannot figure out what cars to build, good-bye. The others will take up the slack.