And let all the facts come out. He's already indefinitely suspended, so waiting to see how it plays out legally, police reports, etc, isn't going to harm things. If we find out that he made a boneheaded mistake by just moving a car and nothing else, I say make him run some more stairs, maybe even go a bit Arrington on him, and let him prove himself again.
If there is more to it, like him being flagrent in terms of driving more than that, or any other vehicle, if he was speeding, breaking traffic laws, then yes, I think his time at Michigan is done. Hard lesson to learn, but better to lose teh rest of your college football career now before the consequences become even worse.