It’s happening, Bush to announce this morning that GM and Chrysler will get a total of $17.4 billion to keep on keeping on:

Under the terms of the plan, if the companies can’t demonstrate financial viability by March 31 the loans will be called and the money must be returned, the statement said.

Dunno exactly what that means yet. “Demonstrate financial viability” - by going Chapter 11 and reorganizing? By closing plants and cutting jobs? Union’s gonna have to give here, but what and how much, and who says? Stay tuned.

Update: More details:

Mr. Bush made his announcement a week after Senate Republicans blocked legislation to aid the automakers that had been negotiated by the White House and Congressional Democrats, and the loan package announced by the president includes roughly the identical requirements in that bill, which had been approved by the House.

The loan deal also requires the companies to quickly reduce their debt obligations by two-thirds, mostly through debt-for-equity swaps, and to reach an agreement with the United Auto Workers union to cut wages and benefits so they are competitive with those of employees of foreign-based automakers working in the United States.

2009 is going to be a helluva rocky year.