I am long GM and Ford, as of today.
Why in the world would I dump money into these dogs?
Simple. Obama is pro-Union, and he will not let the auto makers fail. He will absolutely pump taxpayer money into these companies for as long as it takes to keep them alive. In addition, his environmental policies require electric vehicles, and GM is the main benefactor of those policies.
I will sell part of my position immediately after a bailout is approved and their stocks jump. I predict a 40-50% jump in the days following an approved bailout for the auto makers.
I will hold the rest until the bailout is distributed, or until I realize 100% gains.
The Unions helped elect Obama, as did the "lets all drive electric cars" crowd. Both demand that the automakers survive indefinitely.