So far it doesn’t look good for the Big 3’s chances at receiving a bailout anytime soon.

The situation that the U.S. automotive industry is in leaves us with a tough dichotomy: while it would be devastating for the industry to go under, it would also be a bad idea to reward the executives for their consistent failure. The best solution will address both of these seemingly opposing concerns.

Let’s be honest here. The executives of Ford, GM, and Chrysler have squandered away more opportunities than most companies will ever have a shot at, and the country as a whole ends up being the loser for it.

The automotive companies are not in the same situation as the oil companies. The increased demand for fuel-efficient vehicles should not have been seen as a threat, but as an amazing opportunity. As much of the world industrializes and joins the market for automobiles, specifically those that require less fossil-fuel and are more environmentally friendly, the global market for Prius-like products is ripe for capitalization. Unfortunately, the executives at U.S. automotive companies didn’t see this opportunity, and in turn spent their development budgets on creating faster, bigger, and more fuel-consuming vehicles.

American auto manufacturers had the opportunity to be the vanguard in a new generation of transportation products with a global market eager to purchase those products. That opportunity was squandered.

American-made hybrids and other fuel-efficient vehicles could have driven the United States economy into the 21st Century with great strength. Imagine how much money could be saved by the United States Postal Service if they had hybrid vehicles. Taxi companies would be able to save a ton on overhead costs while buying American. The development of fuel-efficient emergency vehicles could have cut down health care costs. Products across the board would have become more affordable due to a dramatic decrease in costs throughout their supply chains. Businesses would be able to spend more capital on employees instead of on fuel costs.

This opportunity existed.

Capitalism is based on the concept of adapt or perish. These auto executives refused to adapt even though the opportunities were there. While Toyota moved towards the future, the Big 3 remained locked in the past. While their companies are hanging on the brink of bankruptcy due mostly to their incompetence, forced to beg Congress for a bailout, they are collecting huge salaries and continue to live like kings. They even chartered expensive private jets for themselves to go beg for our money. Pardon the pun, but that just won’t fly.

Advocates for huge CEO salaries say that they need to pay huge amounts to compete with other companies for the best talent, that it is demand that makes these people worth so much. I think it’s clear that the current executives of the Big 3 are a little light on the talent, and personally I wouldn’t want to hire one to run a lemonade stand.

So here is my solution. Bail out the automotive companies under very specific conditions. First, the current CEOs all have to be fired without getting golden parachutes. Second, CEO salaries need to be limited if the American people are subsidizing the company. Third, the companies need to step up their development of those fuel-efficient vehicles that could have prevented this in the first place.

Maybe, just maybe, the opportunity hasn’t completely passed.