Straightline

The car enthusiasts news blog from Inside Line

GM financial situation "grim"

GM logo - 129.JPG"Grim," that the word being used when describing the General's financial situation. If they stay on the current path, they could run short of cash next month--and that's even with government aid.

"Even if GM is able to secure immediate U.S. government support, we believe that GM's predicament has the potential to set in motion a sequence of events that would be bankruptcy-like," said Deutsche Bank analyst Rod Lache, who lowered his rating on GM shares to "sell" from "hold."

Full story here.

Here's Inside Line's take: GM Loses $4.2 Billion in 3Q; Running Near Empty Cashwise

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2 Comments

estreka says:

06:52 AM, 11/11/08

They need a buyer for Hummer ASAP. Even so, the cash received for it will be a drop in the hat compared to how much cash they'll need next year.

It's a shame Detroit didn't fix their portfolio 10 years ago instead of the past 3 years. It's ironic that the thing that's hurting GM is the exact thing they dismissed a decade ago.
I could see a documentary now: "How the Electric Car Killed GM"

ateixeira says:

11:23 AM, 11/12/08

Sell Hummer, then Saab.

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