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I seem to recall reading something from a couple of years ago that indicated that declaring bankruptcy might end up being a good thing for GM in the long run, though devastating in the short term. It would be difficult to pull in investors and harm their public image (people would be very reluctant to buy a car from a bankrupt company), but if GM did enter bankruptcy status, it would essentially absolve them of a lot of their legal obligations to franchise owners and unions. They would have far more freedom to restructure the company and their labor force. It'd be drastic, but could allow GM to come out the other end much leaner and meaner.
So while a bankruptcy would be a negative thing, it doesn't mean the end of the company by a long shot.
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