GM Books $4.2b Net Loss in Q3; Bankrupt By December

gm books 4 2b net loss in q3 bankrupt by december

The Wall Street Journal reports GM’s statement on its dismal Q3 results. The General’s general admits that “estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business.” So, essentially, unless GM gets a federal bailout by 12/31/08, the artist formerly known as the world’s largest automaker will be forced to file Chapter 11. And no wonder, given GM’s cash burn reported [with all the numbers] by Yahoo! Finance. “Cash, marketable securities, and readily-available assets of the Voluntary Employees’ Beneficiary Association (VEBA) trust totaled $16.2 billion on September 30, 2008, down from $21.0 billion on June 30, 2008… The change in liquidity reflects negative adjusted operating cash flow of $6.9 billion in the third quarter 2008.” The entire “money shot” quote after the jump.

“Even if GM implements the planned operating actions that are substantially within its control, GM’s estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company’s estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve, it receives substantial proceeds from asset sales, takes more aggressive working capital initiatives, gains access to capital markets and other private sources of funding, receives government funding under one or more current or future programs, or some combination of the foregoing. The success of GM’s plans necessarily depends on other factors, including global economic conditions and the level of automotive sales, particularly in the United States and Western Europe.”

Comments
Join the conversation
2 of 79 comments
  • Happy_Endings Happy_Endings on Nov 08, 2008
    Barry, Nancy, and Harry to the rescue. GM's not lasting until January. They'll be gone by Festivus if nothing is done. Which means the Republicans will also have to get involved somehow.

  • Tate Tate on Nov 09, 2008

    It was coming, but its sooner than expected. The US Gov should sell all the brands to large Private Equity Companies (similar to a Chrysler and Cerebus Capital) and provide tax holidays and provide support for new green field production factories (thus helping economy) and in the meantime the brands can share production facilities at the existing factories and keep selling the current cars. This will develop new dealerships and supply chains etc and help boost the economy. Its hard and might sound stupid currently but will make sense in the long term future. For example- Maybe the Pontiac brand will down the years become a specialist high performance name like the Porsche or lotus. While Saab may become a specialty in hybrid technology.

  • Master Baiter The D-bag elites like Al Gore demanding that we all switch to EVs are the type of people who don't actually drive. They get chauffeured around in black Yukon Denalis. Tesla does have a good charging network--maybe someday they will produce a car that doesn't suck.
  • MRF 95 T-Bird As a Challenger GT awd owner I lIke it’s heritage inspired styling a lot. There’s a lot of 66-67 as well as 68-70 Charger in there. It’s refreshing that it doesn’t look like a blob like Tesla, Volt/Bolt, Mach-e BMW I whatever etc. The fact that it’s a hatch makes it even better as a everyday driver thus eliminating the need for a CUV. If it’s well built and has a reliable track record I can see trading up to it in a few years.
  • Jbawden I thought sedans were dead? Coupes even more so. The core Charger/Challenger buyer is in it for the Hemi. To whom is this and the presumed EV Camaro marketed to? The ICE versions of these cars have a LOT of shortcomings, but rear drive, a V8, and a Tremec 6 speed made all that disappear. If you're forcing me into a 1,000hp appliance, then give me some visibility and practicality while your at it. And for the love of all things holy, please allow me to maintain a little dignity by leaving off the ridiculous space jam sound effects. What out of touch focus group think approved that? It's almost as embarrassing as the guy who signed off on the Pontiac Aztec.
  • Jalop1991 The simple fact is, America and Americans excel at building complex things (bridges, for example) but absolutely SUCK at maintaining them. We're too busy moving on to the next new shiny thing that a politician can get good airtime for. Fixing the bridge? Not sexy. Cutting the ribbon at a new EV charge site? Photo-op worthy. Demanding that the owner of said charging site be accountable and not let his site become the EV equivalent of a slum? Hard and not a newsworthy event.I have a PHEV and once tried some sort of public charging, just to see what happens. Failed miserably. We'd all be riding horses today if gas stations performed like EV charge stations do.
  • SCE to AUX Apps like PlugShare prove a few points:[list][*]Tesla's charging network is the best, almost always earning a 10/10.[/*][*]Dealer chargers are the worst, often blocked (ICE'd) or inaccessible behind a locked gate.[/*][*]Electrify America chargers aren't bad; my few experiences with them have been quite good. But they are also very new.[/*][*]Calling the help line is nearly useless.[/*][*]There are still charging gaps in high-travel flyover areas, which coincidentally have a lot of "Trump" flags waving in them.[/*][/list]As an EV driver and engineer, I don't understand how public chargers get so screwed up. They are simple devices. My home charger is 10 years old and has never missed a beat, but it only gets one cycle a day and lives indoors.
Next