Let the market do it's job. The Automakers are failing because they have bad union contracts, make poor and not very innovative products and have a bloated and ineffective supply network of waaay too many dealers.
I know I have heard the doom and gloom about all of the related companies that rely on the automakers and this is true but they are not going anywhere. If GM ends up in bankruptcy, then they will simply restructure make better contracts and make better products to bring them through the downturn much like airlines or many other companies have done.
But what happens if even restructuring doesn't work? Don’t you think some smart, young entrepreneur would come in - at least at some price - to buy the company’s assets and build a new, leaner, better, faster automobile company that would employ many of the same people and still buy from most of the same suppliers.
So even in the "worst case scenario" we as a country end up with a better and more competitive company in the end.
Make no mistake, there is one loser here and that is the unions. The failure of the auto companies is a major indictment of unions and their failure would be devastating for the future of unions.
Watch out for a nasty battle. The unions have tons of money, BO's ear and will not let these union companies fail. That is a shame.