The government doesn't have a conflict of interest here. You are treating it like a sole entity, when in fact it is not. The administration speaking is in no way connected to the wellbeing of GM.
I agree. If anything, this only helps Hyundai (and Kia), Ford and Volkswagen. My analysis follows.
1. Honda and Nissan are Japanese brands and carry a slight stigma that Toyota is Japanese as well. This really shouldn't matter but this is the world we live in. The rest of the Japanese auto manufacturers don't sell volume to matter (Nissan is arguable as well).
2. The US has already lost respect for GM and Chrysler. Until they pay back every tax payer penny and start building consistently good automobiles, their massive marketing campaign won't do jack. This will eventually happen.. many decades from now.
3. Ford, Hyundai (and Kia) and VW are the only major US market auto manufacturers to gain respect, image, market share, reliability and perceived reliability. Especially impressive considering the world economic condition.
My predictions. Toyota will continue to lose sales, other Japanese brands stay static, GM and Chrysler continue to fall into the pits of doom, and Ford Hyundai and VW.