Sounds like the automakers have a stronger hold on your political system than they do here.
Actually, Detroit is virtually ignored here by politicians. Doesn't seem to be a lot of love there.
But yeah, I'd do the arbitration. Screw losing all that money. No matter what you buy to replace it, I'd get your money back or try.
Build quality seems to be failing all across the globe (Germany,Canada,US and Japan) for all brands. As a supervisor you really have to keep those employees nailed to the ground to achieve constant quality, and the employees whine like theres no tomorrow so everyone tends to break down... and you get cars like yours. I've worked as a supervisor in a major American manufacturer. You just have to be a nazi dealing with sense of entitlement and hatred the people putting your car together hold. It doesn't take much to get them disgruntled, they dont even want to do their job I don't know why some even showed up 2 of 5 days they decided to come to work.
GM is improving, and I'd buy one now. Honda is falling behind everyone it seems, and Toyota is probably doing the best still. They seem to be adhering to the Deming principles best. I prefer Honda to Toyota due to their innovation years ago with their VTEC schtick, though GM has the coolest looking products IMO..
I'm buying a car soon myself and considering punishing the North American auto industry for a while longer though myself. I'm a patriot and believe in the idea that you gotta buy your neighbors goods for them to buy yours, but the auto industry is definitely a special one and I have little sympathy for those in the business.
I wouldn't blame you if you did the same and voted with your money differently next time.