Democrats should offer an auto loan to offer a bridge to the auto companies to being better suited for the marketplace.
The companies should be forced to re-organize in terms of executive pay, union rules, and other issues.
Unions should be in the business of protecting workers rather than demanding benefits that are unsustainable in this market.
Management pay should be linked to long-term performance.
As a party we shouldn't try to dictate what vehicles should be produced. We should work to remove any barriers to a free competition, and offer incentives to produce and sell fuel efficient cars; but if people don't want them, we should respect the market.
We can however work to figure out the reasons why and address that in a manner that promotes personal freedom and choice.