Yeah, this was pretty much expected. Yahoo has the AP story White House considering new ways to help carmakers:

The White House says it is considering using the Wall Street rescue fund to prevent U.S. automakers from failing.

President George W. Bush’s press secretary says it would be “irresponsible” to further weaken the economy by letting the Detroit car companies fail. Dana Perino says the White House normally would prefer to let the financial markets determine the companies’ fate.

But she says that given the economy’s shape, the White House will consider other options if necessary to prevent the automakers’ collapse — and that could mean using money from the $700 billion Wall Street rescue.

…

Perino made the remarks as Bush flew to Texas for a commencement speech.

The funny part is that if you approved of the TARP because you wanted to increase consumer lending, this is arguably a much more effective use of the funds than the bank injections. Market has opened down about 200 points and seems to be holding. We’ll see how that lasts.