Unfortunately, so many people are confusing Chapter 11 bankruptcy with going out of business.
1. I was working for Federal-Mogul when they filed. The plants didn't stop working for an hour. I'm not saying it didn't have an impact, but it was a mere ripple in the supply of parts that we produced. People did not lose their jobs. At least not one person at my facility. And GM and Ford still got the parts we were supposed to be supplying. When UAL filed, their flights continued on schedule (or as much on schedule as they ever did). The whole notion that GM would be greatly affected from a parts supply standpoint is a load.
2. GM would in fact be responsible for a portion of DPH debts to UAW, but that only puts GM in a stronger position with the UAW. If they bail DPH out, they will never see an end to their own UAW woes.
3. There is no reason to believe that 185,000 would lose their jobs. There would certainly be some loss due to some plant closings and the end of the jobs bank, but the company plans to remain intact and keep producing parts.
4. Workers are free to trade their DPH stock for another mutual fund. I lost a ton of money on DPH stock too, but I realized at about $6 I needed to cut my losses. I would hope that no workers (long-time or not) don't still have a lot of company stock.
5. UAW would in fact become weaker. That more incentive for DPH to file and GM to allow it.