Now that Government Motors has now been born,   the stupidity of it all continues to baffle the mind. 

The remaining portions of the old GM were given over to  the new entity which is the GM that exited bankruptcy a few weeks ago.   Its a new "company".     Whether or not it ever manages to become a privately owned company seems very unlikely to this blogger.     When you are owned mostly by the folks that got you to this point of insolvency,  the idea that private investors would be interested in owning stock is ridiculous.  

The government will, basically,  have to give it away to rid itself of it (another reason  it will never be free of federal ownership).   The unions will never give up its 20 percent stake willingly in the new GM making the company even more worthless to anybody.  (Not that the 20% is worth anything now,  but its a badly kept secret that union leaders have wanted ownership of GM for decades, and B.O. gives it to them in six months). 

Is GM's days in Bankruptcy Court over?   NOT BY A LONG SHOT!   It will be there again.    Any private owner that would manage to get control of it, would have to send it there again, no question,  its only a matter of time.    It will go there again many, many times if the government keeps it too.

Will GM survive?   Not as we know it,  thats for sure.  

The only way for GM to survive and live again is private owners.   Pure and simple!

The government cannot save it,  it will only burn up billions of taxpayer money the longer it is owned.  

The best outcome of this mess, may be the breakup of the parts that have some value.    We may see what is possible if Saturn survives as a brand under ownership of Penske (its too bad even that was done so bad politically).    Of course, the only thing is,  that  Penske is going to make no attempt at actually building cars.  (they are going to pay others to build cars, I can't see GM getting too many contracts).   I don't see this company working out,  but what about other more business oriented investors.

What about creating new smaller privately owned auto companies out of the remaining assets of GM?

Most if not all could be union free, to make them competitive again.   The factories,  some of the brand names could live on under new management and as new companies.  

A broken up GM, if allowed to break up the way it should be done (the way it should have been done already).   could spark a revival of the American auto industry.    GM was so big,  several good sized companies could emerge.  Image several new companies making great cars making money  instead of a deadweight GM making cars nobody wants at taxpayer expense.   They could do joint ventures like the car companies already do,  if they aren't big enough etc.    Far more jobs could be saved or created by allowing the market do the job instead of the government wasting huge amounts of our money.   When was the last time a new American auto company been created?  A long time (due to government regulation barring the way, go figure).   But few have vision. 

Why does GM need to be saved?

I sure can't think of a reason.