GM counts down to "B Day"

As the auto industry, and consumers await the fateful decision on whether General Motors will file for bankruptcy protection, several ripples have coursed through the auto industry recently. And, as ripples often do, they are heading in different directions. (Read "Failing to reduce debt, GM bankruptcy looks inevitable.")

Today's highlights of the carpocalypse:

Bonds – Following direction from the U.S. Department of the Treasury, GM offered bondholders a debt-for-equity exchange, essentially trading $27.2 billion in debt for a 10-percent stake in the company. The deadline expired late Tuesday, without the bondholders accepting the offer, signaling bankruptcy was inevitable. However, today, the Treasury sweetened the deal, offering bondholders the rights to buy an additional 15-percent of low-price GM stock, according to a Securities and Exchange Commission filing. The major bondholders have accepted this revised offer, though GM could still be headed for bankruptcy. Under the new plan, the U.S. and Canadian governments would own 72.5 percent of New GM when it emerges from bankruptcy, according to the Detroit News.

New Cadillacs – Cadillac will replace the current SRX crossover vehicle with two models, a new, more SUV-like SRX and a CTS wagon. (Read: "Pricing: 2010 Cadillac SRX.")

GM pays early – To ease bankruptcy concerns, GM has paid about 90,000 employees three days early. Likewise, it plans to pay about 1,500 suppliers today, ahead of its scheduled June 2nd date, according to Reuters. This last gesture could be seen as a strong indicator of imminent bankruptcy, and also good will toward its valued business partners.

Suppliers file for bankruptcy – As feared, major and minor suppliers are suffering during the recession and some are moving to bankruptcy. Visteon today announced that it was pursuing Chapter 11. Spun off from Ford Motor Company in 2000, Visteon has failed to make a profit in the 21st century, according to Automotive News. Today, it supplies Ford as well as other automakers. The interior, climate system, and electronics producer joins Metaldyne, Delphi, Federal-Mogul, and Dana, among others, in seeking bankruptcy protection.

We will continue to monitor this fast-moving story, reporting here in the Cars blog and also updating advice and news on the Auto Crisis hub.

—Jeff Bartlett