I dunno if bankruptcy would help or not. But what they really need for the long run is simple: Better design. They're getting their butts munched by Ford, ~and~ Chrysler fer cryin' out loud.
I don't even really like the new Chrysler style all that much, but it definitely shows an outta-da-box style shift. It will work for them. Ford has completely hit one outta the park with the 05 Mustang. They will sell a buttload of those.
GM needs to make some fun cars, and then people will buy them. It is precisely that simple.
The unions have made it nearly impossible to make money on the kind of automobiles GM makes unless they make a lot of them with a good recent design. The 2000 era pickups are an example. Now this model is dated compared to Ford and the imports. Chrysler products are still sh*t and always will be, even though I like the PT Crusier.