AND NOW GM - AT 5:17 P.M. ET:  It was widely predicted.  (Please see our 6:43 a.m. post.)  GM has now lowered the boom on 1,100 of its dealers, as CBS reports:

CBS/AP) A day after Chrysler LLC moved to eliminate nearly 800 dealerships, General Motors Corp. on Friday told about 1,100 U.S. dealers their franchises will be terminated late next year.

The cuts are part of a larger GM plan to slash 2,600 of its 6,200 dealerships as the automaker tries to restructure to become profitable again. The moves likely will cause the loss of thousands of jobs across the U.S. Local governments will lose thousands of dollars in tax revenue as dealerships are forced to close.

The dealerships notified will have until October 2010 to close out their businesses, reports CBS News correspondent Jeff Gilbert.

COMMENT:  The history of the auto industry shows that car companies do go out of business.  Stanley Steamer is no longer around, and neither are Packard or Studebaker.  But the extent of the economic calamity brought on by the virtual collapse of GM and Chrysler is unprecedented in the industry's history.  And there is some serious question as to whether either company can actually survive.  Who will buy their cars?  This is big trouble.

May 15, 2009