Here is my take on whether to bail or not the auto industry.
Under no circumstance should GM or Ford be allowed to die. More on that later.
Chrysler: Sell the brand to GM for 0 dollars and some stock. What we're looking to save here is Jeep, and some niche products like Sebring Convertibles. Chicks dig em, and with the GM engine they might be worth more then spit, and live more then 90k.
Sell the Dodge Ram to Mitsubishi, or someone else.
GM: Bankruptcy. Restructure your debt and labor contracts. Use fed money to buy back your bonds at .50 on the dollar.
United Auto Workers: Put up or shut up. Use the one billion dollars in your strike fund to buy into GM. Become a full partner in the company, and continue buying into it. Play to your strengths. Outwork the rest of them. More hours, less pay, full profit sharing. I don't own the company that I work for, but I do own my workmanship. Fire those that don't own their workmanship. You work, you eat!
Back to the top: Machines of war are and have always been made in factories at home. No factories, no defence.
One more thing. China is a new world leader because they make stuff. We quit making stuff, and now have nothing to do.
It really is just that simple.