I've been thinking a little about this for a while. Given that both GM and Ford (large healthcare providers with a small automotive business attached ) are in dire financial straits at the same time the economy is relatively strong, what would happen if the economy weakens and these companies go into Chapter 7 (discounting my favourite strategy of dumping U.S. ops and moving production to Canada)?

I believe car rental rates in N. America have been kept relatively low, with unlimited miles to boot, as the Big 3 sell huge amounts of cars to the rental companies and provide a guaranteed buyback price after just a few months? The foreign manufacturers can sell their cars for higher profit margins at retail prices so they have little incentive to sell new cars at lower margins.

So if GM and Ford do fail (and liquidate), could we see car rental companies actually have to buy cars at higher prices, with no guaranteed buy-back prices, and actually have to make money so renters will have to pay higher rates, drive older cars and have limited free mileage (just as in Asia, S. America and a good part of Europe), or will we see cheap Chinese-made cars in the rental fleets?