Think it through. The government will bail them out. They don't deserve to be, as they are bloated and burdened with very high cost labor contracts which will not be broken and products that are very high priced and are no longer in demand. But even if they should go into bankruptcy, their plants and equipment are very valuable, and will be sold to the highest bidder. Another auto company will emerge (let's call it GM II) and it will return to the business of producing cars and trucks. This company will recruit a workforce that will settle for reasonable compensation like most other blue collar workers in this country are paid. The cars and trucks will be produced at a much lower cost, and will again be competitive. The demand for palladium will be higher than ever, as far more cars will be produced and sold as a result of the more attractive pricing. Let's hope that GM fails, as in the long run we will all be far better off. SS
If you think about it, whether government bails out GM is not even relevant.
The global auto indsutry depends on end user demand, NOT depend on individual auto makers. If I need to buy a car I will buy what is available, with or without GM. If I don't need to buy a car today, I will buy none, doesn't matter what brand is out there.
A good analogy is that some 15 years ago, the last American owned TV making company went out of business or be acquired by a foreign company. Do people stop watching TV? No they watch even more TV today.
Frankly I belieev GM should go bankrupt, get rid of the baggages. And then government can provide help to re-organize the company into a competitive auto maker.
I am saying it from one who invests heavily in palladium, and I am not worried about the fundamental demand of PGM metals just because GM goes bankrupt.
In the long term, the market will work things out, and if GM or Ford went under, obviously one of the Asian car companies or a new american car company would take the place........but you can't tell me that if GM filed for bankruptcy tomorrow, that the price of Palladium wouldn't fall $50 bucks like nothing.