The Big Three
Should become the big two. Chrysler should be liquidated while trying to encourage (thru tax breaks?) new and up-and-coming auto companies to take over certain brands with the govt getting Chrysler Defense. First, Chrysler Defense is I believe profitable so that will help fund the big 3 bailout. Margins would probably increase as well since we would be buying our own stuff basically. Second this is homeland defense; Americans’ tank production should not be in the hands of a private company who is free to run it into the ground oh so elegantly.
GM has to reorganize. Their debt service doesn’t seem even remotely manageable. The US should strike a bankruptcy deal where GM and the courts proceed on their own, but with the US guaranteeing all warranty obligations. They will already have some capacity from the acquisition of Chrysler Defense.
Ford seems to be able to tread water, just barely. Govt should be ready to help them if needed, but they should continue making the changes they’ve already started.
That’s my bailout plan.