Split the company in two: Hive off Chevy, Buick, and Cadillac, and then liquidate the rest, including the lumbering, old high-cost setup

Radical Proposal
Here's my radical proposal for a heart transplant to save General Motors:

1. Divide GM into two companies, the first composed of Chevrolet (including trucks), Buick, and Cadillac.

2. Install new management and a new board of directors, move the headquarters to a new location, and create an empowering culture for all employees.

3. Negotiate new employee agreements with wages and benefits competitive to those of foreign producers' U.S. factories (around $44 per hour, not GM's current level of $73), including health plans and pensions comparable to its foreign competitors.

4. Retain only GM's most productive American and foreign factories—those that operate at greater than 80% of capacity.

5. Embark on an aggressive new-product development program to make its autos fully competitive in engineering, features, and styling within five years.

6. Commit to a fleet average of 40 mpg by 2015 and 50 mpg by 2020, competitive with European standards, with a mix of hybrids, electric cars, lighter vehicles, and efficiency improvements.

7. Re-charter the dealer network for these three brands with fewer, healthier dealers.

8. Establish a viable capital structure enabling this company to operate with sound cash balances and a reasonable debt-to-equity structure.