8 bailout questions answered

If a Detroit automaker does go out of business, it's likely there will be some kind of warranty coverage for people who bought one of their cars in the past or who buy the remaining inventory. But the nature of that warranty is not certain.

This is a key argument for why bankruptcy wouldn't work. Even if the automakers give assurances that warranties will be covered by a third party, consumers will be nervous, making it more attractive to buy from a strong foreign automaker that can still stand behind its cars.

NEXT: Installing safeguards