Yesterday, GM announced that it was going to stop making matching contributions to salaried employees' retirement accounts. It simultaneously dropped a requirement that a portion of these accounts be invested in GM stock. Union contracts prevent it from doing anything with hourly employees' wages or benefits, but retirement obligations are a huge liability to the company, just as they were a factor in the collapse of the US steel industry.
This follows an announcement not long ago that they would be letting go 30,000 employees and closing several plants in states like Michigan, Ontario, and California. The company has a glut of vehicles, mostly SUV's, that it overproduced in 2005 and has had to slash pics to move. Their largest supplier, Delphi, is already in bankruptcy. GM's credit has been lowered to junk status.
How long before GM goes under?