Today GM filed for Chapter 11 Bankruptcy. This move is met with mixed feelings as the 100-year-old auto giant goes through the processes established by the government as part of its restructuring plan. The latest news is that the US government would own 60%, the Canadian government with 12.5%, the UAW with 17.5% and the unsecured bondholders with 10%. All old shareholders will be eliminated.

GM is also discontinuing or selling Saturn, Hummer, Pontiac and Saab. Its main brands are the only ones left; GMC, Chevrolet, Buick and Cadillac. It will be interesting to see what the government is forcing GM to do now that it owns it. Now it can be called Government Motors.

In the wake of this disaster, Ford actually plans increase their production in the third quarter, while their counterparts close their factories for a while. Ford plans to produce 150,000 cars and 310,000 trucks, 10% more than at this time last year. A Ford spokesperson says the increase in production is driven by consumer demand for American vehicles (such as the popular Fusion and F-150).

It’s nice that Ford can produce more products now, especially since the other Detroit dealers are going through such tough times, it’s unfortunate for them, but that’s how capitalism works, more or less. As the summer months roll on, be sure to watch the news for details on the fate of the Detroit 3 – there is sure to be a lot of controversy down the road over the restructuring plans that Chrysler and GM are going through.

As a final note, I am forced to ask the question that no one wants to hear … why don’t we let Chrysler and GM fail? We broke the rules on capitalism a lot last year, and frankly, I’d rather my government not own a ton of businesses. But that’s just me.