Bankruptcy may be the best option for GM, to cut its ties with UAW, but what about the suppliers. Bankruptcy will also prevent the suppliers from getting paid. About 70% of the parts that make up a car come from suppliers and usually suppliers get paid in 30-60 days after a car is built. So there are billions of dollars in the pipeline that the supplier may loose.

If GM goes under then the job loss ratio between GM and suppliers will be about 1:4, meaning for each job lost in GM there will be 4 jobs lost at the supplier. This is what they are calling a rippling effect.

The best way is to find out a solution to cut ties with UAW without hurting the suppliers, and aren’t any such options.