As GM’s 41 percent November sales drop sinks into the public consciousness, The General’s generals have not-so-coincidentally released their not-secret bailout request. And here it is. Judging from the state of things, Rick Wagoner might need to fly to DC– before it’s too late. “General Motors said Tuesday it needs $4 billion in government loans this month and a total of $12 billion by late March to keep operating,” MSNBC reports. “Altogether, the auto giant is seeking up to $18 billion in government funding — including a $6 billion line of credit in case market conditions worsen.” Jeez, that doesn’t leave much for Ford or Chrysler! I make that $7b between them. A pittance really. Unless… they’re planning on asking for more. Could it be?
It could. Meanwhile, say goodbye to Pontiac, Saturn and Saab. BUT, exactly as our Ken Elias predicted, not until later: 2012. “General Motors Corp. would focus on 4 brands — Chevrolet, GMC, Buick and Cadillac. By 2012, the plan calls for 20,000 to 30,000 fewer workers, a reduction of nine facilities and 1,750 fewer dealers.”
It’s scary; Ken also predicted GM would tout a debt-for-equity swap… later. “GM will outline efforts to negotiate swapping some of the company’s debt for equity stakes in the automaker, either shares or warrants for them, said two people briefed on the company’s plan.”
The good news for GM? The MSM is swallowing the Curley defense (I’m a victim of coicumstance): “U.S. automakers are struggling to stay afloat heading into 2009 under the weight of an economic meltdown, the worst auto sales in decades and a tight credit market.”
Yeah, who could have predicted two months ago that GM CEO Rick Wagoner’s claim that his company had enough cash to last through 2009 was complete horseshit? Other than anyone who was paying attention.