I was watching Dateline Detroit on Speed the other day. They were saying that Delphi wasn't quite ready to file, but felt pressured to do so before the October 17th law changes. It was a sticky situation, but they thought they would probably file before the deadline to be safe.

Yeah, GM is in real trouble because they predicted it would cost GM $6 BILLION to bail Delphi out if they didn't file bankruptcy, but upwards of $11B if Delphi DID file (which we see now they did). This is money GM simply doesn't have.

I think that while GM does make crappy cars, the biggest hardship they face is the UAW. There is no reason that putting lugnuts on Cobalt's all day should earn you $25/hr and full benefits. The US automakers will simply never be able to compete with the foreign makers on all levels. It will be either price or quality, but never both.

Huge labor costs is something only the US makers have to contend with and as long as they DO have to contend with them, they'll be screwed.