So far the risks of bankruptcy on sales haven’t materialized. In fact, he noted June sales were actually up compared to May, and have been increasing each month since March. Henderson attributes this in part to the fact that the federal government has backstopped vehicle warranties.
When GM went into bankruptcy on June 1st, it carried with it a risk that it might not rapidly emerge. It was hoped from the start that the quick-rinse or 363 sale bankruptcy could be completed within 60 to 90 days. Continuing in court for months or years would be an agonizing and likely devastating process for the automaker.
Chrysler was put through a similar process beginning a month earlier and was successfully able to merge with Fiat and leave bankruptcy after a mere 42 days.
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