Someone will buy the assets from the Big 3 and start a new car company, that actually makes good cars. Creative Destruction is a beautiful thing.
I think even buying the pick of the assets of the big 3 from a ch7 auction will still be really tough.
Big three are weak in small car and fuel efficient midsize car segments.
Ch7 and a new company would get rid of UAW and legacy costs. But obsolete plants and obsolete products problem would still remain.
It will be tougher still in a recession with total units sold down way from 17mil level.
However, there is something salveable there. The US is the world’s biggest car market, there is a significant market for pickups, suvs, luxury cars, midsize cars, minivans, sporty coupes.
I think a restructured Detroit could be competitive in those segments. But, putting $50 to $100 bil into failing Big 3 is just a repetition of British Leyland on a massive scale.