Possible bailout for Motor City

KENMORE, N.Y. (WIVB) - Lawmakers on Capitol Hill are spinning their wheels over a possible bailout for the Motor City.

So what happens if one of the Big Three automakers goes bankrupt?

Paddock Chevrolet in Kenmore had to lay off 10 percent of its workforce.

If General Motors were to declare bankruptcy, many believe that would be a catastrophe.

Car salesman: "While we're in here I'm gonna pop the trunk so you can just get a quick peek."

It's a steep uphill climb for salesmen of American cars, with consumers reluctant to spend, and the Big 3 criticized by some lawmakers as having their hand out.

Senator Richard Shelby (R-Alabama) said, "These companies are failures now unless we get rid of the management, get rid of the business model. We're wasting a lot of the taxpayers' money."

But what if General Motors were forced to file for bankruptcy?

Car industry expert Art Wheaton tells News 4 it wouldn't be a Chapter 11 re-organization, because that requires money to make it happen.

Industry Education Specialist Art Wheaton said, "If GM did file for bankruptcy, it would likely be a liquidation and they would close all of their dealerships and that would really hurt the economy and all the suppliers, and steel companies would feel the pain immediately."

There's already pain in the dealerships, with GM sales down last month 36 percent, despite vehicles the dealers say are every bit as good as foreign made cars, that it's just a matter of perception.

Duane Paddock (Paddock Chevrolet) said, "The perfect example is our new Malibu, which is leading in the segment of fuel economy, but the overall general perception of the public, is that it's a Malibu."

Duane Paddock is optimistic the auto industry will get the bridge loans, and that the economy will come back, maybe in a year.