There has been alot of talk about a pending General Motors bankruptcy. The company says it would be devastating and would hinder car sales on the theory that nobody would want to buy a car from a company in bankruptcy.
There are broader issues. General Motors is indebted to the members of the United Auto Workers (UAW) union for health and retirement benefits in a staggering amount which by estimations exceeds $200 million. GM is currently negotiating with the UAW where it is expected to pump $35 billion into a voluntary employee-benefit association.
If GM files for bankruptcy it could reject its UAW contracts and avoid most if not all of this $200 million debt. The consequences would be disaterous for all the current and retired auto workers.