Many companies have had dangerous items recalled, and are still in business. As an example, Tylenol was once poisoned and caused deaths; many items are regularly recalled. Companies need to put safety first, but if the government went about putting each company that had inadvertently had dangerous products out of business, there wouldn't be many companies left. This is why government recalls exist. That being said, there is recourse for families who have faced problems with recalled products, such as class action lawsuits.
GM should stay in business if people are prepared to buy their product. If people recognize that the quality is lacking due to malfunction, then naturally business should drop. This is how a market works. GM should never be told that it cannot operate because it failed, and GM should have never been compensated for going bankrupt to begin with. Companies live and die by their products.
GM should be allowed to remain in tact after these mistakes because, to put it quite simply, the USA needs GM to remain operational. In this business there is going to be mistakes. Big ones. But there should definitely be lawsuits and more regulations slapped on GM from here on out.
Yes, I think GM should be allowed to stay in business, but I also believe someone needs to be held accountable. It is absolutely unforgivable that a company would choose to turn a blind eye to this. I think it would be wrong to punish the hourly workers by not allowing GM to remain in business.