It's not just that the car companies misjudged the market (They make small cars and such and Toyota makes SUVs) but the union contracts they are stuck with make it impossible to compete with Toyota or Honda. I honestly don't think having them go bankrupt would be all that bad of idea. It just means they have to reorganize and all those sweetheart deals that the unions got would be rewritten. It has to be done there is no way they can compete with Toyota due to labor costs. That's the real elephant in the room not that they didn't make hybrids or electric cars.