The Chrysler bankruptcy is painful -- and will continue to be painful -- for a lot of people, there's no doubt about that. The effects of a Chapter 11 bankruptcy by a company of Chrysler's size are more far-reaching than you might guess. But one thing that Chrysler has going for it is a plan -- a plan for a partnership with Fiat when Chrysler eventually emerges from bankruptcy court. But as the June 1 deadline approaches for General Motors Corporation, it appears that there is no plan.
Now, I understand that GM insiders most likely know exactly what move they're making next, and there have been some rumors, but as far as a long-term plan for survival (like the Chrysler/Fiat deal...?), right now, no one knows if there is one. And the fact that there's no real plan in place for GM when it eventually emerges from bankruptcy court makes a lot of people really nervous.
How many people? Well, that's just one of the points made in Allison Linn's article on msnbc.com. General Motors is huge. Even after all of the layoffs and plant closings over the past several years, GM remains a giant. The following list of numbers from Linn's article clearly shows just how big GM really is -- even when compared to a company as large as Chrysler:
Employees Chrysler: 54,000 (as of December 2008) General Motors: 244,500
Vehicles sold in 2008 Chrysler: 2.01 million General Motors: 8.35 million
Major U.S. brands Chrysler: Chrysler, Dodge, Jeep General Motors: Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab, Saturn
Dealers Chrysler: About 3,200 General Motors: About 6,000
Like I said earlier, the Chrysler bankruptcy is going to be painful enough; however, when you take a look at the numbers, the approaching GM bankruptcy might be downright scary. What do you think?