The Wall Street Journal is reporting GM mulling bankruptcy protection:
The prospect of mighty General Motors Corp. tumbling into bankruptcy protection edged closer on the weekend, increasing the danger of a cascading collapse of a major chunk of the North American auto industry.
Talks between the United Auto Workers union and GM on concessions broke off and then resumed again as The Wall Street Journal reported that the auto maker will offer a restructuring plan to the U.S. government that includes Chapter 11 bankruptcy protection as one of its options.
The Wall Street Journal is also reporting:
The Obama administration will not appoint a "Car Czar." An inter-agency process, led by Geithner and Summers, will instead tackle issues relating to auto companies.
What does all of this mean? Well, any way it goes it will have a major ripple effect across the U.S. auto suppliers industry and workers. There are all sorts of smaller companies which supply the big 3 with components to make cars.
It's interdependent Medusa like business structure could pull all three down.