I agree with you, but this will never happen. You think anyone would like to be responsible for bankrupting GM? It's bad PR. All people will talk about is how many jobs will be lost.

Here in Brazil we have a somewhat similar problem where the auto industry has been completely subsidized for over 70 years. Our factories are extremely inefficient and customers pay exorbitant amounts of money for a car. But if they remove the subsidies and import restrictions all of these industries would inevitably go bankrupt. Even though this is a good thing (these industries would not exist without these unfair advantages) nobody will ever want to be the bad guy that caused all those job losses.

It's simply not solvable in my view.

Isn't GM responsible for GM? But yeah, it's a totally fucked situation.