The Washington Post, among others, had a story this morning on using the powers of the Emergency Economic Stabilization Act (EESA) to support the automotive industry. From the article:

The law grants the secretary broad authority to purchase troubled assets that he deems important to improving financial stability," said Treasury spokeswoman Jennifer Zuccarelli.

Ford and General Motors are eligible because they are both chartered as thrift holding companies, so they can establish banks to make car loans nationwide. Other businesses, such as General Electric, Nordstrom, John Deere and Macy's, are chartered in the same way to issue credit cards or make loans to their customers. Chrysler would also be eligible, Treasury officials said.
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Automakers are among the most troubled of the bunch. Their financing arms make more money than the cars themselves. Yet the credit crisis has all but frozen this part of the business, making it difficult for shoppers to get the loans to buy cars and even for dealers to finance their inventory.
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Though Congress rushed to pass a $25 billion loan package aimed at boosting production of energy-efficient vehicles, the money could come too late and could not be used freely by automakers.
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Last week, the Michigan congressional delegation, headed by Rep. John D. Dingell (D), implored Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke to use their "broad regulatory authority" to "promote liquidity in the U.S. auto industry."

The U.S. Chamber's Bruce Josten also sent a letter to Secretary Paulson and Chairman Bernanke last week in support of the effort.  From the letter:

The automotive industry is one of the most critical sectors of the U.S. economy with almost 4% of the U.S. gross domestic product and it is responsible for the one in 10 American jobs that are related to automotive manufacturing.

Directly and indirectly, the economic breadth and contribution of the U.S. automotive industry is deep and far reaching across the country. U.S. automakers directly employ approximately 355,000 American workers and indirectly employ nearly 5 million additional jobs through related industries that are dependent on auto manufacturing, sales, and related activities.

Over the last two decades, the automotive industry has invested nearly a quarter of a trillion dollars in the U.S. and is among this country’s top industries for R&D spending. Automakers also are among the largest purchasers of U.S.-manufactured steel, aluminum, iron, copper, plastics, rubber, electronics, and computer chips.

The financial crisis is having a dramatic, negative effect on automobile manufacturers, suppliers, and especially dealers and automobile finance companies that provide financing to dealers, consumers, and commercial purchasers of vehicles.

The current economic environment requires immediate government action to restore liquidity so that the U.S. auto industry is able to function, meet consumer demand, and develop new energy saving technologies. The Chamber urges you to use your broad regulatory authority and all of the tools available to you, including the powers recently granted to you by EESA, to support the distressed auto industry which is so essential to the U.S. economy.

In addition a letter was sent to Congress urging their support for the Department of the Treasury in this matter.