Can General Motors recover from bankruptcy? Will anybody buy a General Motors car from a bankrupt auto maker? Will anyone want a franchised dealership if the company is in bankruptcy? Will the franchised dealerships of General Motors claim that General Motors is not giving them the services they promised to the franchise agreement and now that they are insolvent they can't? Therefore, the franchisees should have the money back for their franchise fees, royalties and be free to break the franchise agreement.
When General Motors files for bankruptcy protection this means that many other vendors which they have not paid for six months in some cases may not get paid for well over a year or more and they may not even get the full amount. This means all the service companies and the companies that make the components for the cars are out serious dollars and they will have to lay off people, many already have.
These vendors may not be able to recover either and many more dealerships will go at a business. It gets worse because many cities rely on the sales of cars to help generate sales tax revenue for city services. Worse, consumers may not come back to General Motors for a long time, instead they might buy their competitors vehicles, perhaps automobiles made by Ford, Toyota or Honda?
