On the brink of bankruptcy General Motors and Chrysler will share 13.4 billion dollars in federal loans with a March 31st deadline to prove they've financially viable or they'll have to pay the money back.
"The time to make the hard decisions to become viable is now or the only option will be bankruptcy," said President Bush.
If they comply, automakers can qualify for another four billion if Congress approves.
The loans will come from money Congress set aside to bail out banks.
President Bush didn't want to do that.
But with Congress unable to agree on an auto rescue, he says he had no choice.
"In the midst of a financial crisis and a recession, allowing the U.S. Auto industry to collapse is not a responsible course of action," said Mr. Bush.