I don't want to see the car companies fail; I think the fallout would be terrible. But I do believe that there should be MAJOR conditions attached to bailing them out, including the ousting of all the current management.
However, I'd like to make a suggestion to the car companies, something that they should do without being forced to, something terribly symbolic of what their attitudes should be going forward: no more lobbyists. Fire them all, and promise to never again attempt to turn public policy in their interests.
If you think about it, the car companies have run themselves into the ground by their own inflexibility; they opposed all safety and environmental regulations and ended up making their recent money by exploiting a loophole in the current regulations, the one that allowed SUVs to exist. If car companies no longer lobbied, they would be tacitly committing to deal with the world as it is, rather than as they'd like to see it. I think that would be wonderful symbolic gesture, and car manufacturers, wouldn't that make your jobs more interesting? ;)