GM / Chrysler bankruptcy != Business disappears and all suppliers go bankrupt. This is the straw-man argument of the left.
The American auto bailout was a purely political play to save the unions who supported the Democrats. With billions in hard assets and a huge intellectual property base, the auto companies would have made great investments to potential buyers. Does anyone actually believe that no one would even attempt to pick up the pieces of the auto industry, sans-unions, and try to come out ahead?
If you agree with the media/government spin, then you believe that the auto companies would have fired all employees, sold all of the manufacturing equipment and plants, and closed shop forever.
The reality is that the company could have used existing bankruptcy law to get rid of some of the union/pension overhead and return to profitability. This is exactly what American Airlines is doing right now. Only in the extreme case would they even need to sell the company.