They are burning cash so fast now with few sales and continued expenses that any or all of the three could be out of business within a year. They are looking for government loans to stay alive...

"A top General Motors Corp. (GM) executive on Wednesday said the next 100 days could represent the most crucial time in the history of the troubled company and entire U.S. auto industry."

It is amazing that they are burdened with more than 4 times as many retirees on full benefits than actual employees. That expense threatens not only current cash flow but the ability to develop and market cars because of the constant drag on finances.

 

It's a scary time out there! I did my part by purchasing a Yukon. It's a damn nice vehicle too.

 

GM is waiting for Obama to give them the check. Stupid in my opinion but we can't agree on everything.

 

wow....just wow

 

Obama can't give them shit. Conrgess can, and actually the Big 3, their Unions, and Pelosi are meeting today to talk about doubling the current bailout.

 

I bet the comments are meant to put pressure on elected officials for a handout.

Either way we are screwed. Either we give the company a bunch of money to fix a mess they created with poor judgement, or if GM files for bankruptcy and they can unload pension liability. I think the goverment has a mechanism to take on most of the pension costs through the Pension Benefit Guarantee Corp.


I would not give them a bailout and let them go to bankruptcy becuase if you give them $20 billion and they still file for bankruptcy, then you get the pension costs on top of the bailout. Call their bluff.

 

+1

who's next in line if they get a hand out?

 

Well, we've already done farmers. Then financial services industry. Amtrak. Insurance. Now probably auto industry.

I guess we will have to keep Blockbuster and Hollywood video chains in business with tax money after everybody starts streaming movies over the internet.

I have a cousin in the UBWMU, the United Buggy Whip Makers Union. The guy gets a $200,000 per year from the government to keep producing buggy whips and the feds put them in a big wharehouse next to some surplus cheese and the Ark of the Covenant.

 

We've already done auto before, and you know they were given $25 billion again not too long ago.. we've done airlines, we've done countless other industries.

 

The loans approved by Congress in September are tied up in the bureaucracy with projections that money might not reach to companies for 18 months... too late in today's environment.

As much as they would like to declare bankruptcy and restructure their way out of some long term contracts the fact is few would buy a new car from a company with an unknown future. Sales would go to near zero.

On top of that there is a fear that any substantial interruption in payments to suppliers would start a chain of bankruptcies that would effectively end major US auto production.

The 100 day comment was made by Troy Clarke, president of GM North America, who has a reputation as a straight shooter. It is not believed to be a bluff in any way.