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If the big 3 had been forced to make cars that got over 40 mpg where would they be today?
They'd be losing market share to foreign transplants making suburban assault vehicles and heavy pickups. The US auto industry has been required to pay federal and state government to put them out of business since the Reagan administration, so instead of they lose market share to foreign transplants that get subsidized with tax dollars contributed by US corporations.
Congress isn't particularly prejudiced in favor of domestic companies. They'll sell out to anybody, and have been selling out for so long and so much that they've ruined the market and can't even get a good price any more.
When right-wing policies are stacked against you, in order to indirectly attack your unionized workers, it really doesn't matter what your business strategy is. You're damned if you do and damned if you don't - and then get blamed for not doing the opposite.
