Merriam-Webster ‘ s Online Dictionary named “bailout” as the No. 1 Word of the Year for 2008 last week. This announcement came near the end of tumultuous financial year that witnessed the U.S. Congress allocate nearly $7 trillion of taxpayer money to struggling companies and government institutions, according to a CNBC article.

The latest bailout plans to rescue the automobile industry. And judging by some reports, the industry needs to be rescued.

Last week, news organizations reported that General Motors is considering nixing half of its brands, Saturn, Saab, Pontiac and Hummer, to cut costs and win bailout money, leaving the company to just sell Buick, Cadillac, Chevrolet and GMC vehicles.

Also last week, the New York Times pointed out that the Ford Motor Company spends an average of $2 billion of its cash each month.

And The Wall Street Journal detailed earlier this week that Chrysler’s auto sales have plunged 41.7 percent from a year ago.

Such dire reports demand immediate action. Congress already has allocated $25 billion for Ford, General Motors and Chrysler. The government will be meeting for bailout hearings this week, and if all goes well, will convene to vote on the proposed auto bailout loans next week.

While the bailout may save thousands of industry jobs, a larger problem still will exist after the money has been distributed.

Last Sunday, Ron Gettelfinger, the United Auto Workers chief, publicly plead for the government to help U.S. car manufacturers.

“We cannot afford to see these companies fail,” he said. “[The rescue plan is] not a bailout, this is a loan – a bridge loan – that will get us through until we can take a longer-term look at exactly what needs to be done in the industry.”

The larger problem concerning the auto industry bubbles through in Gettelfinger’s statement. Instead of waiting until after receiving money from the government, automobile companies already should have taken a longer-term look at their futures. Any company not investing for the future does not deserve to have one.

However, the auto industry, which employs millions of Americans, plays such a vital role in the nation’s economy that allowing the companies to go bankrupt would be a poor move, especially when the rest of the country is hurting financially. At this point in time, the bailout is necessary, but even more necessary is the reconstruction of how the American auto industry conducts its business.

Last month, the CEOs of Ford, GM and Chrysler spent $20,000 each on private corporate jets to fly to Washington D.C. to ask for bailout money. Those travel decisions were absolutely asinine and totally wasteful. Fortunately, the CEOs are driving to the nation’s capitol for this week’s bailout hearings. But companies need to do more than just alter the way their top executives travel.

Automakers need to direct their efforts into producing what their customers want, which is quality vehicles that are inexpensive, fuel-efficient and environmentally friendly. Not only will this move boost auto sales, but it will keep the company’s CEOs from having to knock on Congress’s door again.