Aren't consumers already suffering?

The bailout of our auto industry is a great example of how government and business should not work together.  Government should encourage business to grow, to compete, to improve the products they sell.  So the headlines of a recent CNN.com story found here was laughable.  The headline reads, "Consumers to suffer if GM goes under" Isn't the fact that GM can't compete with other car makers because their labor agreements are strangling them and their product is inferior the real issues?  Furthermore, aren't consumers suffering already if they buy a product that is less efficient, needs more maintenance and doesn't even look as appealing as the competitor's offerings?  

Consumers won't suffer if they have to pay 20% more for a car that's 50% better than a GM car.  Businesses fail and they succeed.  It would be a MAJOR blow to the economy if we lost any of our car makers but it isn't healthy for us to support businesses that aren't succeeding.  Bailing out unprofitable companies is like buying an extra ticket on the Titanic.  Even if you get a great price on the ticket, you're never going to get where you want to go riding on that ship.