Wall Street Ends on a High Note; Dow Gains 270 Points

Ford requested from Congress $9 billion in low-interest financing as a backstop while it reorganizes operations and said it hopes to break even or turn a profit in 2011. The company said it would rather transform its business without government help. CEO Alan Mullaly said agreed to a $1 annual salary should the government offer the funds. Ford shares gained 5.9% to $2.70.

GM requested $12 billion in term loans to shore up its liquidity through 2009, and requested an additional $6 billion line of credit in case of a further market downturn. The company said it intends to repay the loans as soon as 2001. It said it intended to ramp up its development of fuel-efficient vehicles and would consolidate its operation. Shares climbed 5.7% to $4.85.

"My personal preference would be to force a merger between all or two of them," Hinsdale's Nolte said of the automakers. "They're going to have to get smaller. They're not selling that many cars anymore." Nolte said that the $25 billion bailout the automakers are after is not an adequate solution. Worries that consumers would cease buying cars from a bankrupt company are overstated, he said. He added that it would be acceptable for the government to stand behind the warranties on the automakers' products in the event of a bankruptcy.

Automakers also rolled out their November sales figures Tuesday. Ford said its light-vehicle sales fell 31% year over year, slightly better than expected. GM's vehicle sales were down 41%, and Chrysler said it experienced a 47% dropoff in sales.

Toyota (TM Quote) reported a sales decline of 34%, and Honda (HMC Quote) said its November sales dropped 32%. Toyota gained 5.9% to $62, and Honda added 3.3% to $20.59.