The mechanism for "bailing-out" was a loan guarantee.
Chrysler paid back the banks without the government (i.e., taxpayers) ever having to pony up a penny.
A pledge of one's credit is has tangible value. If you co-sign an auto loan for your son, he can borrow on more favorable terms. If the government co-signs, (at least back in the 70's) more favorable still. But when you co-sign, it impairs your credit rating and you must make future loans on less favorable terms.