In late March, the administration announced that it would help fund warranties for domestic automanufacturers (what does that really mean anymore). The details can be found here - http://www.whitehouse.gov/assets/documents/Warrantee_Commitment_Program.pdf

Basically, under the Treasury Department is setting up a special fund whereby the car maker will cover 15% of the expected cost over the life of the warranty and the Treasury will cover 110% - providing 125% of the expected warranty cost.

If the automaker goes out of business/does not survive restructuring, the administration will transfer the warranty to a third party service provider.

As for current warranty holders, all warranties will be honored without interruption (according to outgoing Chrysler CEO Bob Nardelli).

You can also find more information on the Chrysler bankruptcy here - http://www.latimes.com/business/la-fi-consumers1-2009may01,0,1146337.story