The essential theme of this thesis is evaluating impacts of financial crisis on automotive industry in the Czech and Slovak republics. The thesis examines the transfer of financial crisis from the USA to Europe and consequently to the Czech and Slovak republics whereas it identifies the role of different factors during the transfer. The thesis subsequently deal with reaction of the governments on the crisis aimed at automotive industry. Fundamental part is devoted to cash for clunker program where the main aim is to answer the question: To introduce or not to introduce cash for clunkers? With regard to recency of this theme and inaccessibility of professional literature the theme is elaborated in the way of study of domestic and foreign Internet resources and analyses from governmental and non-governmental organizations. The outcome of this thesis is evaluation of the status of automotive industry in the Czech and Slovak republics and evaluation of the governmental help to this branch of industry. Main contribution of this thesis is elaboration of a topical theme and the answer to the question concerning cash for clunkers. In conclusion we can mark the help of the Czech government as insufficient.