Yes, the once greatest business in the world, longtime Fortune 1 Company (or Fortune 2 when Exxon/Mobil was a bit bloated for its own good), granter of prosperity to wherever its factories sat, builder of dreams (or their automotive analogs), the force behind suburbia, malls, the drive-in movie and expressways – bankrupt and getting reorganized into a smaller, “better,” more skinflinty company. Fewer cars (and brands) to sell, lower wages and benefits for workers (and, one hopes, for the C?Os who leach off the cream of the place) and a smaller chance at recovery.
Yes, Virginia, the sky has fallen.
Here’s what worries me: Now that we’ve seen GM cry “uncle,” are people going to buy the cars from the now-bankrupted company? As I’ve written about before, there’s a lot of hatred towards GM; what if with this bankruptcy and takeover by the government this hatred becomes solidified in a “Boycott Chevy” movement? Ford is still “solvent,” and while they may not be able to meet the ramped up demand that this boycott would meet, there’s a possibility that between Ford, The Japanese cars and the “Drive For 200,000 (not a bad idea, imho)” whatever demand that the reduced GM could have covered would be sopped up.
Meanwhile the remaining factory in Flint (Flint Powertrain) will close. From 80,000 to 0 in thirty years. Who would have thought…