And even simpler idea
If the threat of turning a business in critical condition over to business-ignorant idiots who screw up almost every major venture they touch, why not just threaten to burn down some of the auto company's buildings? Just as effective, and probably less damaging in the long run.
It's fashionable right now to pretend that the entire problem with the auto industry has been the management. It isn't, not by a long shot. And believe me, management would be the only area that any Democratic-controlled government "fix" would address.