Simply put, the Detroit automakers must become more American. It's ironic that the so-called foreign automakers who have production facilities in this country are much more free-market oriented than our "own".
In reality, with the advent of free-trade the ultimate ownership of the companies doesn't matter. Especially since, Americans can buy stock in foreign companies and vice-versa. This, and because of our military arsenal, we as a nation will always have the final say in trade deals as to what is in our best interest.
So what to do with Detroit?
Force the companies to compete in a fair marketplace, in terms of worker compensation and benefits, and product manufacture.
This means the unions must lose some power.
I don't agree with the whole "green" movement.
If the American people want "green" technology then they will demand it, and the government won't have to mandate it.
The government should give the companies time to come up with new plans to lower production costs (worker pay and benefits), develop whatever cars will sell (as green as possible-based on demand), and to get their corporate structure correct.
Democrats should stand for a government that helps companies compete in a fair market the right way.
If this is what is going on currently, I agree with it.