Bankruptcy doesn’t mean Chrysler would have stopped building cars anymore than bankruptcy meant United Airlines stopped flying airplanes.
In order to toss out the UAW contract it certainly does. UAW would have called their bluff and tried a work stoppage, and Chrysler would had to have been willing to let them...
I have qualified my statement time and again on this thread - Chrysler was failing and should have been allowed to fall all the way - crash - burn. Sell the bad assets and burn the contracts. Let new investors come in and pick up the pieces. Anything short of that, including what we have now, is nothing more than patchwork ending with a short shelf life. Chrysler remains in trouble, and will probably have to fall again before she can be rebuilt properly.