One thing to consider is that the auto industry is in fact a strategic national asset. When push comes to shove, America's production capacity is a strategic advantage in any conflict, whether it be churning out Hummers, artillery or aircraft parts in tremendous quantity. Auto plants can be easily converted to military production if need be. I know the plants on our site built thousands of armoured personnel carriers during WWII. If all American production capacity is closed and turned over to Japan, China, Korea, etc., the US can find itself at a serious disadvantage if a real conflict were to emerge.
From a business perspective, I don't really like the idea of a bailout but it is better than the alternative. Plus, you need to consider the business/government relationship in the offshore auto companies. Basically, the Japanese government financed the development of Toyota's hybrid battery system with which it is now conquering the US market. The US automakers thus far have had no similar assistance from the US government and so find themselves that much further behind in technology and that much poorer from attempting to finance that research and development themselves. Not only that, but the Japanes government offers their domestic automakers a protected home market, free from competition from our domestic producers. Essentially, the Japanese government has provided a safe, secure and well-subsidized domestic market from which it's automakers can expand around the globe. Domestically, the US government has been relatively hostile to it's own automakers in comparison.
From a consumer perspective, I don't understand the bias against North American vehicles. The quality, economy and price of the vehicles are equal to or better than their offshore equivalents, yet this does not seem to register in consumers' minds.
