By Kate Gibson

As Ford Motor Co. prepares to report what's expected to be its biggest first-quarter loss in more than 15 years, the drama surrounding car companies continues, with stock analysts debating the merits of a bankruptcy by General Motors Corp. and whether the government should be helping Chrysler.

On Thursday, Ford (F) shares advanced for a second straight day after Goldman Sachs advised investors to purchase its shares before industry changes that Goldman predicts will benefit the nation's second-largest automobile maker.

Ford, which posted a record loss of $14.7 billion last year, is the only big U.S. automaker that's managed to continue without help from the government. The Dearborn, Mich.-based company is slated to report its first-quarter numbers on Friday.

General Motors (GM) was among the components weighing on the Dow Jones Industrial Average (DJI) on Thursday, its shares lately off 3.7%.

The Dow fell 53.92 points to 7,832.65, the S&P 500 Index (SPX) shed 5.06 points to 838.49, while the Nasdaq Composite (RIXF) declined 14.06 points to 1,632.06.

GM's CEO last week said the nation's biggest carmaker would file for bankruptcy protection unless it finds a means of restructuring debt by June 1, while Chrysler has until the end of the month to ink a deal with Fiat to avoid bankruptcy.

Nick Kalvas, equity analyst at MF Global Research, believes bankruptcy could be positive for GM.

"Chapter 11 is not the end of the world for GM's operation. Given the political climate, many will cheer a bankruptcy," the analyst said.

Chrysler's troubles were well known when the company was purchased nearly two years ago by private investment firm Cerberus Capital Management, contends Dan Greenhaus, an analyst at Miller Tabak & Co. He argues that there is "no systemic threat whatsoever from a Chrysler bankruptcy or liquidation."

"It appears Treasury is willing to increase its offer to repay Chrysler senior lenders. I fail to see why the government should be providing any assistance whatsoever to Chrysler," said Greenhaus.

"We're never going to get efficient and profitable car companies in this country if we prop up the weakest and least efficient," said Greenhaus.

As for GM, Greenhaus does not believe the government should be supporting it either, but concedes "an argument can be made to help GM get through this time."