> Comparing GM, Ford, and Chrysler all going bankrupt simultaneously GM was the only problem because Ford wasn't in trouble and Chrysler was (and still is) neg

> Comparing GM, Ford, and Chrysler all going bankrupt simultaneously GM was the only problem because Ford wasn't in trouble and Chrysler was (and still is) negligible. > auto industry is highly concentrated in a single geographic area Most "US made cars" are not made in Michigan.... "In 2011 , the Detroit Region produced 1.56 million vehicles, accounting for nearly 82% of Michigan's motor vehicle production, over 18% of the United State's motor vehicle production, and nearly 12% of North America's motor vehicle production. Currently more than 151,000 metro Detroiters work in the automotive and auto-related industries." http://www.detroitchamber.com/component/content/article/14-about-detroit/924-auto-industry http://www.detroitchamber.com/component/content/article/14-a... US auto suppliers sell to all companies that make cars in the US. > Who would be left then to use these assets? Some unnamed US automotive company? Not necessarily - there are folks who could have afforded the assets. (Penske is a minor player and they made a serious bid for Saturn.) Note that GM was selling cars for more money than it cost to make them - the problem was the legacy liabilities, liabilities which they'd have shed in ordinary bankruptcy. The "bailout" money was a political payoff. It mainly went to keep the UAW pensions solvent and GM shut down Saturn as a sweetener. (The UAW always hated Saturn, even after organizing it.)