Since we published our Carmageddon cover feature back in November, the wheels have fallen off the US auto industry with a resounding clunk.

As such, last month's announcement that Chrysler and GM, without federal assistance, would be out of business by the New Year was greeted with little more than a perfunctory raised eyebrow at Business Management HQ. There was a certain grim inexorability about the whole episode.

What did interest us was the hastily agreed loans package that was pushed through congress to help the stricken carmakers through the start of 2009.

My take on the deals for GM and Chrysler is that they will most likely act as bridging loans, allowing those companies breathing space to prepare for an orderly chapter 11 filing rather than as a means to prevent bankruptcy altogether. Is it likely either GM or Chrysler will be deemed "viable" by the March 31 deadline, as requested in the terms of the loan? Hardly. Detroit's problems are so deep-rooted that instigating a meaningful turnaround (which is, after all, what they have been attempting to do without success for the past decade) in such a short space of time is barely conceivable.

What it does do is afford them time to cut deals with suppliers, workers and creditors in advance. Having those deals and comprehensive restructuring plans in hand on March 31 would make a bankruptcy filing a much less ominous proposition. It opens the possibility of entering Chapter 11 with a court-approved turnaround strategy (or 'pre-packaged filing') that would drastically reduce the time spent in bankruptcy and minimize negative consumer perceptions.

In this respect, the loans may serve a purpose (albeit at huge cost to the taxpayer) - but only if the companies use the time they've bought wisely and prepare for the inevitable.

I still believe bankruptcy protection is the only way these firms can effectively address their numerous issues. What the industry needs is radical change, not the sort of incremental improvements likely from continued government assistance. This is, at best, a band-aid solution. But if it helps in the long-term healing process, it may just be worth it.