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With Chrysler and General Motors completing their bankruptcy proceedings and continuing on with their restructuring, it may seem ridiculous that President Barack Obama still finds the need to defend the government bailout of the two companies.

But that is exactly what he did during a speech at a Michigan community college recently. Obama said that if nothing was done, then the economy would have experienced a catastrophe due to the massive loss of jobs.

More details can be found here. What do you think? The bankruptcy's pretty much a done deal.

The U.S. House of Representatives approved a measure that tries to help automobile dealerships hit by the bankruptcies of Chrysler and General Motors.

The House voted 219-208 for a $24.2 billion spending bill for the fiscal year starting Oct. 1. The legislation includes controversial provisions that try to restore the economic rights of those auto dealerships that have been closed or are facing such a prospect as a result of the GM and Chrysler bankruptcies.

The bill’s future in the Senate is uncertain, and the Obama administration strongly opposes it because the cuts were deemed necessary as part of the government-financed restructuring of GM and Chrysler.

Chrysler shut down 789 dealerships during its six-week bankruptcy, which ended June 10. Before it filed for court protection on June 1, GM told about 1,300 dealerships that their franchise agreements wouldn’t be renewed when they expire in October 2010.

The legislation would return dealerships to their previous status. If automakers want to continue with the cuts, they’d have to go through state courts.

Chrysler, in a statement before today’s vote, said its bankruptcy accelerated a dealer reduction that began more than a decade ago.

"If Congress reverses this process, it flies in the face of a U.S. vehicle market that has declined 40 percent since 2007," Vice President Peter Grady said in a statement on the company's blog.

"Indeed, the U.S. dealer network was built to serve a market that once sold 16 million vehicles a year. Those days are gone."

U.S. auto sales averaged 16.4 million annually this decade through last year. This year’s sales have been running at an annual rate below 10 million.

Minister of Industry Canada, Wednesday, welcomed the merger between Chrysler and Fiat to create a new global car giant after the Supreme Court of the United States to explain how they are merging.

Ottawa, 11 / 6 (AutomotiveRoll) - Minister of Industry Canada Wednesday welcomed the merger between Chrysler and Fiat to create a new global car giant after the Supreme Court of the United States to explain how they are merging.

"The Government of Canada is confident that we will see the competitiveness of Chrysler Canada Inc. That will produce and sell cars made in Canada and will continue to play an important role in Central America operating company," said Industry Minister Tony Clement in a statement, as quoted from AFP.

"Restructuring Chrysler is good news for the supply chain of spare parts to Canada and the Canadian consumer,` he said.

"The company can now focus on the production of high quality vehicles that customers want."

In a letter to the workers Chrysler, Fiat chief executive Sergio Marchionne said that Fiat and Chrysler have been combined ranked as the sixth largest car industry of the world.

Ottawa to allocate 22.4 billion U.S. dollars for Chrysler in April to assist the restructuring process is different. (Ant)