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Step one absolutely has to be severing the sick link between the auto industry and the oil industry.
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First off this is the biggest load of bull, and I always feel the person saying it is insulting my intelligence if I don't stuff it into the ground. IF there was a link, the auto industry would be in much better shape. They would have been able to work together prior to any price spikes. Look, it takes about 5 years to build a new model. If they were working together in this vast-white-CEO-conspiracy, they would have started building hybrids so they were in full production in time for the oil spikes. They weren't, and got a large one stuffed up their ass because of it. They have tons of SUV's sitting unsellable, while they lost almost entirely the share of the sedans for the average American. They REACT to the changing oil prices, when oil was $20-30 a barrel gas was cheap and they went accordingly. No one went for the hybrid technology because the average price was $6-10k more per car, it wasn't economically worthy. IF there was a connection between big oil they would have had the technology rolling out with hybrids on the lot. Instead they react only, and because of that they are bottoming out.
/rant off.
I would move the plants from the Unionized-to-Oblivion Illinois/Michigan and move it south. I would tell the employees they get moving expenses paid for, on the agreement the union would not move with them. Cost of living as well as taxes are MUCH lower, as well as true at-will states. Give fair wages and benefits, lower the Manager:Employee ratio, and all-together follow the example of the foreign car plants which are symbols of efficiency and fair wages.
And by Manager:Employee ratio.... I would also make everyone in upper and middle management take a huge pay cut.