No, it will not work this way for the auto industry. It worked like that for airlines and department stores for a couple reasons. 1. There were more of them so when one went out of business, there were plenty of places to get another job. 2. They weren't already cutting HUNDREDS OF THOUSANDS of their workforce. Ford alone has let over 60,000 people go in the past year (early retirement, buyouts, etc). They are not filling those positions. If GM and/or Chrysler goes out of business, Ford can barely make ends meet right now. They can't hire THOUSANDS of people. It isn't possible.
In addition, you are not factoring in the suppliers. Supplier #1 provides steering wheels to all three companies. Supplier #2 supplies brake pads to all three.....and so on. If two of the three go out of business, the suppliers take a HUGE hit. They aren't going to be hiring any new employees, they will be letting people go, if not closing the doors themselves.
We need manufacturing in America. The Big 3 are all we have. They have some SERIOUS things they need to fix quickly to get back on their feet but they can not fail. Not at this point in the game. We are talking about millions of other jobs that come into play if the Big 3 goes under. I truly feel it would have devastating consequences.