GM undoes 86 years of history

For the first time since 1922, it has suspended paying a dividend on its stock. But Merrill Lynch says even that may not be enough to avoid Chapter 11.

Some business analysts agree.

One problem is that it could COST the General money in the short term to get rid of some of its brands, due to having to pay money to dealers. Plus, as the story notes, there’s no guarantee a Pontiac buyer will become a Chevy buyer.

Finally, GM won’t realize any major savings from new deals with its unions until 2010.