A news report quotes a member of GM's National Dealer Council that as many as 40% of GM's dealers may fail if GMAC is forced to file for bankruptcy.
GMAC is currently working with their existing bond holders in an effort to secure $30 Billion in capital so they can qualify to be a bank holding company. GMAC has been trying to change their status to a bank holding company so they can have access to the TARP funds.
If GMAC is not able to access the TARP funds they may be forced to file bankruptcy and suspend their financing of wholesale inventory. Given the current health of GM's dealerships, it is thought that as many as 40% are not strong enough to secure another floorline.
Here's a link to the news report:
http://www.bloomberg.com/apps/news?p...21D.U&refer=us