Dang, thread turned contentious all of a sudden... I was just hoping for some good-natured import vs. domestic bashing.
I feel that this country needs to preserve at least some of its industrial/manufacturing base, of which the auto industry is one of the last big concerns standing. With that said, I would be much happier with a
smaller, healthier industry that can compete unreservedly with anyone, be it Japan or Germany (or South Korea, or India, or China...) than a figurative Ottoman Empire pre-WWI, simply propped up to preserve the balance of power.
The roots of the problem lie in the fact that at one time Ford, GM and Chrysler controlled practically the entire U.S. market (at one point GM by itself controlled 50-51%). At the time they could sell every car they built, so of course they would go out of their way to keep growing their production capacity and workforce. Now, with the fragmentation of the market among a larger number of players, the domestics still have the number of factories/divisions/employees/pensioners/etc. of a much larger company that they simply can't support anymore. This is why I agree that GM especially needs to seek Ch11 protection, completely reimagine their business, and adapt to the new world. If a tree isn't healthy enough to support all its branches, you start lopping off branches until the tree can recover, or the whole damn thing will die.
tl;dr - the Big Three should declare BK, tell the UAW to stick it in their ear, and follow their foreign competitors to the South. We GIT-R-DONE and we don't like unions.
Of course, then large portions of the North/Midwest turn into Haiti. Uh oh.
Anyway, here's a picher.