General Motors and Chrysler received 17.4 billion in federal bailout out money to help their ailing automobile industry. The two automobile companies are required to swap debt for equity as a requirement of the federal government bailout. So what is going on with the automobile industry after the bailout?

In an effort not to seek additional government assistance, Ford has divised an economic plan to offer debt holders $2.2 billion in cash and about 500 million in stocks in an effort to trim the $10.4 billion in debt. Ford is hopeful of luring holders of secured term debt and holders of bonds into the swap. Ford in an effort to compete with General Motors and Chrysler aim to reduce its debt and cut interest rates which would place the company in a sustainable position to wrestle with the other two auto giants.

General Motors and Chrysler are also looking to swap debt for equity. Ford has offered to pay up to $1.3 billion in cash from the Ford Motor Credit Company and up to another $4.9 billion in bonds. The Ford Motor Company does not plan to seek any additional bailout help from the federal government.