From the article, under this "plan" the government will provide:
1. DIP financing for how many billions of dollars? More than 25-50B I bet.
2. Warranty fund. How many billions will it take to fund that?
Also, shutting dealerships will put hundreds of thousands out of work and increase unemployment claims. Hundreds of thousands of GM employees will lose their good paying (maybe a little too good some say) assembly jobs and will rely on the government for unemployment benefits and healthcare and retraining. Plus, the government will lose payroll and income taxes on all these lost jobs. Oh yeah, I forgot about all the suppliers and other jobs that would be lost due to GM no longer having to actually pay them, so that's probably another 500K jobs. What's the price tag to the government for all that? Oh, and then Chrysler and maybe Ford may have to follow suit, so then you get to multiply all this by 3. ARE YOU KIDDING ME
??
Instead, the government could float this
LITTLE 25B (MAYBE 50B?) BRIDGE LOAN. It could actually work! You never know! It doesn't seem that expensive to try compared to the government sponsored bankruptcy alternative.