GM All But Certain To File For Chapter 11

At GM, which has received $19.4 billion in government loans and will need billions more to get through the bankruptcy court process, the bond offer's failure kicks a leg from under its out-of-court restructuring effort.

Together GM and Chrysler employ more than 126,000 people in the U.S., and hundreds of thousands of others rely on the companies working for parts suppliers, dealerships and other associated companies.

Some feared that if either company were forced into liquidation, parts makers would go under, too, pulling down Ford Motor Co., the only one of the Detroit Three that hasn't taken government aid.

From the perspective of GM workers, Comerica's Johnson said they probably don't care whether a reorganization takes place in bankruptcy court or not, as long as the company remains viable.

GM has already announced plans to end its relationship with about 1,100 dealers. Chrysler has a similar plan to sever ties with about 800.

"Whether inside or outside of bankruptcy, it seems to be pretty much getting to the same point: fewer brands, fewer jobs, fewer models, but not something that would lead to liquidation," Johnson said.