This is ridiculous. I see absolutely no reason for Congress to step in and bailout the domestic auto industry. Why didn't Congress bailout Webvan in the 90s? What about Yahoo? They could use some cash. Global Crossing? Enron/PG&E? What about the hundreds/thousands of other small businesses that are struggling because of the economy? Heck, what about the hundreds of businesses that are failing because they're poorly run. Where do we draw the line?
The Big 3 are failures and have been since the 70s. The domestic auto business is structurally flawed (dealers, unions, overcapacity, and over-extended) and has proven incapable of innovating (poor design, terrible quality, no fuel-efficiency improvements, and out of touch).
The United States purchases 12-16 million new vehicles per year. Market share of the Big 3 has declined precipitously since the 70s and that has nothing to do with the economy. The companies are failing because they have been mismanaged over decades. Period. Full stop.