Big 3 and US Auto industry

On a MarketWatch I often see comments that bailing out auto makers "is not capitalism". But I think that's precisely the point.

Concentration of autoindustry left us not with capitalistic companies competing on a free market, but essentially with a "ministry of automobile industry" represented by three huge beaurocratic hierarchies of Big 3. And, as any "ministry", it's not a profit maker.

The problem is what to do about it? Theoretically, we could break up these companies, say, making each brand a separate company. Maybe we even can make each assembly fatory an individual company selling their services to headquerters of brand companies. And we could also separate R&D centers selling their innovations to all brands. And their supplier chain is already detached and unified. That would stir up competition back, but temporarily it will result in raised price on cars and make things even worse.

What's even more hard is that they don't compete with other capitalistic companies. Toyota, Honda and Nissan are essentially a similar "ministry of autoindustry" of Japan. And competing with huge semi-governmental structures is next to impossible, that's why they merged together from hundreds of smaller car companies in the early 20th century in the first place.

Essentially what we learn from this is that even poorly managed corporate socialism is more efficient than free market. Otherwise we already would have many small competeing companies instead of three huge conglomerates.

And odd (and potentially wrong) idea on what we can do is to do bailout through people, give that money as a 0% deferered payment credit to US citizens to buy certified made in USA cars by these three companies. This way people will vote which company should stay and which go broke. And then break just one that went broke. We'll be able to check what will happen and it will be a good enough scarecrow to make all three push to the best of their abilities.