Without a shadow of a doubt, the word “bankruptcy” rings some bells. This would allow automakers to slash costs, reduce unnecessary dealers, and scrap union contracts until there’s no tomorrow. Naturally, the downside is that consumers will experience even less confidence on the automakers and sales may slump even further. A bankruptcy may allow some companies to cut their losses, though.

On the other hand, the “bailout” process is enticing for some. The bailouts, which will likely come with a host of preconditions, could offer the car companies a much-needed injection of cash. The conditions will likely be related to quality control and the creation of new green technology, something that will sell well in the eyes of the consumer. If car companies accept the bailout cash and do what they’re supposed to do, they could recover nicely.

Naturally, one wonders where the bailout money will come from (the consumer) and what will happen if bankrupcty is the option (jobs lost, contracts torn up). In the end, are we seeing a new era of Chevy cars and Ford trucks? Is the idea of conventional dealerships a myth to be remembered in the past only? Only time will tell.

With tough economic times, there’s nothing better than watching high-octane vehicles speeding around a track in circles doing things we could only dream of. The very fact that they can afford the gas prices alone is impressive, even for me. While I’m not a huge fan of NASCAR or most motorsports in general, I can appreciate why this is good news.

NASCAR boss Brian France, talking to reporters over the weekend at Phoenix International Raceway, acknowledged that the auto manufacturers “play a very important role in lots of ways with supporting teams, the branding and heritage.”

On Friday, GM and Ford revealed multibillion dollar losses for the third quarter of 2008. GM warned it could run out of cash in 2009 and, as such, also suspended acquisition talks with Chrysler. How this will impact the future remains to be seen, but it’s probably a good idea to take GM’s warnings seriously.

In the meantime, GM and Chevy cars continue to move off the lots at a relatively slow pace. Company execs are hoping for big-time turnarounds soon, as positive signs begin to come into focus about the economy, gas prices, and the general state of affairs in the country. With the goodwill still extended towards NASCAR, one can hope things start looking up real soon.