Anyone who has ever had their lives frustrated by bureaucratic nonsense from the federal government --- and that probably includes everyone -- should get a kick out of this one: Chrysler's loan application is still being processed.

The Wall Street Journal reports (subscription required) that "Application requirements for Chrysler's $4 billion in low-cost loans may push the payment into January, according to a person familiar with the process. The person didn't know specifically what requirements were causing the slowdown."

Here's what's so great about this: Mismanagement and bureaucratic incompetence led the company into a position where it needs a $4 billion handout from the federal government. Now bureaucracy at the federal government is making it harder to get the money into the company's coffers on times.

Ah yes: Chrysler and Uncle Sam teaming up to save the auto industry. This should work splendidly.

Senator Chris Dodd (D-CT) wants General Motors Corp. (NYSE: GM) CEO out and thinks a merger between Chrysler and GM makes sense. I am happy to hear him say that because I suggested those ideas as part of my six point restructuring plan for the auto industry. The difference is that when Dodd says this, he actually has some power to make it happen.

This morning on Face the Nation, Dodd said, "You've got to consider new leadership. [Wagoner] has to move on." Moreover, when asked if a change in leadership should be a condition of a bailout, Dodd said, "I think it is going to have to be part of it." Dodd also said, "Chrysler, is, I think, basically gone, probably ought to be merged."

This sounds like progress to me. If only Congress could push the auto industry to follow the other four parts of the restructuring plan, that would be great. However, my plan left out an important point -- even if the industry cuts unprofitable products and the related dealerships and reduces pay and benefits it will still need to agree on how much of a haircut the bondholders will need to take in a restructuring.

Nevertheless, Dodd's comments on Face the Nation represent good progress.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

General Motors Corp.'s (NYSE: GM) first quarter results may not be as bad as they look, even though they are horrendous.

The company missed Wall Street forecasts largely because of losses its former financial business incurred in the suprime mortgage market. Net income was $62 million, or 11 cents per share, compared with $602 million, or $1.06 a year earlier. Revenue fell 16% to $43.9 billion. Excluding one-time items, profit was 17 cents per share. Analysts had expected profit of 87 cents on revenue of $40.9 billion, according to Thomson Financial.

Nonetheless, the automotive business had a $272 million profit, down from $295 million, helped by the cost-cutting undertaken by Chief Executive Rick Wagoner. Profit in the automotive segment on an adjusted basis was $304 million, up from $40 million.

So far, investors have indicated that they believe GM's challenges are more daunting than its rivals. The automaker's shares have lagged both Ford Motor Co. (NYSE: F) and DaimlerChrylser AG (NYSE: DCX).

But has the market unfairly penalized GM? Is all of the bad news priced into GM's stock?

Anyone looking for a true contrarian bet should consider buying the shares. Remember people don't get rich following the crowd.