It’s been coming for 6 months, so few people are going to be surprised. That doesn’t mean it won’t be unpleasant.
June 1st is Bankruptcy Day for Generous Motors. Germany and Canada are making last minute adjustments to spin off Opal. Hummer is probably going to China. Saturn is probably kaput. The “good” GM is going to start making cars that nobody will buy (unless forced to by the Obama administration, which is entirely probable).
All of the companies in the auto supply business (unless they do big business with Ford) are going to be selling off their parts for spare parts and going under.
The UAW won one “concession” that one plant that will make 160,000 tiny cars a year will stay in the U.S. and not move to China.
Companies that are owed money by G.M. will now be compelled to write off their accounts receivable. Depending on just how thoroughly Mr Geithner has “backstopped” American Business, that might cause other companies (like radio companies) to topple.
While interest rates eased on Friday, the U.S. dollar lost significant value. You can fend off one or the other, but not both.
“Bye, bye, Miss American Pie… drove my Chevy to the levee and the levee was dry… singing this will be the day G.M. died….”