<P> The Detroit Big Three had been slower to bring new vehicles to the market compared with foreign competitors . The Big Three have battled initial quality perceptions in spite of reports showing improvements . </P> <P> Falling sales resulted in the Big Three's plants operating below capacity . GM's plants were operating at 85% in November 2005, well below the plants of its Asian competitors, and was only maintained by relying on cash incentives and subsidized leases . Rebates, employee pricing, and 0% financing boosted sales but drained the automaker's cash reserves . The subprime mortgage crisis and high oil prices of 2008 caused the popularity of once best - selling trucks and SUVs to plummet . Automakers were forced to continue offering heavy incentives to help clear excess inventory . Due to the declining residual value of their vehicles, Chrysler and GM stopped offering leases on most of their vehicles in 2008 . </P> <P> In September 2008, the Big Three asked for $50 billion to pay for health care expenses and avoid bankruptcy and ensuing layoffs, and Congress worked out a $25 billion loan . By December, President Bush had agreed to an emergency bailout of $17.4 billion to be distributed by the next administration in January and February . In early 2009, the prospect of avoiding bankruptcy by General Motors and Chrysler continued to wane as new financial information about the scale of the 2008 losses came in . Ultimately, poor management and business practices forced Chrysler and General Motors into bankruptcy . Chrysler filed for chapter 11 bankruptcy protection on May 1, 2009 followed by General Motors a month later . </P> <P> On June 2, General Motors announced the sale of the Hummer brand of off - road vehicles to Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., a machinery company in western China, a deal which later fell through . </P>

When did the government bailout the auto industry