[MFE III]

Although I'm not a fan of Gov't bailing out any 'ol company that finds itself in financial trouble, I'm afraid it's necessary here. I heard a statistic that one in ten jobs in the US is connected to domestic auto production. And with the nasty recession we're in, the big three going out of business would be disasterous. Moreover, Chap. 11 isn't an option. Might as well shut the doors if any automaker files for Chap 11. No one will buy a car from an automaker in Chap 11. They'll be concerned, as would I, about warranty, parts availability and resale if the company doesn't pull out of Chap 11.
As was pointed out before, it worked to Chrysler's and the US's benefit in the 80's.