The automotive task force formed by the administration of President Barack Obama to help in the restructuring of Chrysler and GM has declared that it will no longer be putting out money for the Detroit three amid criticism that the bailout is a clear move toward socialism.

The federal government has released around $80 billion of funds to help the car manufacturers and suppliers survive the recession and preserve jobs. There is also a big question whether the taxpayers should be shouldering the problems of the car makers.

The Obama administration defended the move saying that the people have a high potential of earning profits through the investment. With the bankruptcy of the car makers, the government declares that it will no longer be allocating a bailout fund for them. The possibility of helping the industry though during extreme circumstances has not been ruled out.

With the investments in GM and Chrysler, the government is a bit hesitant to take the shots for the firms but is also very eager to see it succeed. The automotive task force explained that the government’s role as a major stakeholder in the companies will depend on how the market will recover.

The White House is very firm on its decision that without the bailout the failure of the car manufacturers will have a very negative effect on the U.S. economy. One of eight jobs in the United States is connected to the car manufacturing industry.