Auditors: GM May Not Be A "Going Concern"
GM’s auditors have looked at the books and made their determination: “our recurring losses from operations, stockholders’ deficit and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern.” The filing with the SEC is refreshingly blunt, in a carefully coded way. “Sales volumes may decline more severely or take longer to recover than we expect . . . and if they do, our results of operations and financial condition and the success of the Viability Plan will be materially adversely affected.” I wonder how many billions of dollars lie between the terms “affected,” “adversely affected” and “materially adversely affected.” The Detroit News finally makes the transition from cheerleader to smokin’ hot crime scene investigator—at least for this piece.
The Detroit automaker almost ran out of money in December before winning commitments of up to $13.4 billion in federal loans. GM said last week it needs up to $16.6 billion more to survive the weakest sales market since the early 1980s, including $2 billion this month to avoid bankruptcy.
GM ended the year with $14 billion in cash, securities and readily available assets — about $3 billion more than the minimum amount it needs to pay bills.
The automaker, which has lost about $82 billion in recent years, is implementing a broad cost-cutting plan aimed at becoming a viable company and repaying the federal loans.
GM is eliminating 47,000 jobs this year, shuttering 14 plants by 2012 and selling, shrinking or killing its Saturn, Hummer, Pontiac and Saab brands. Saab filed for reorganization last Friday in the Swedish equivalent of a Chapter 11 bankruptcy.
GM also is forcing most of its U.S. salaried workers to accept temporary pay cuts.
And the good news is . . . Rick Wagoner has taken a pay cut! Story to follow.
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- Inside Looking Out This is actually the answer to the question I asked not that long ago.
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- Robert I have had 4th gen 1996 model for many years and enjoy driving as much now as when I first purchased it - has 190 hp variant with just the right amount of power for most all driving situations!
- ToolGuy Meanwhile in Germany...
- Donald More stuff to break god I love having a nanny in my truck... find a good tuner and you can remove most of the stupid stuff they add like this and auto park when the doors open stupid stuff like that
Followup: "Under pressure to demonstrate their viability in order to qualify for more government loans, General Motors and Chrysler couldn't produce any additional evidence on Tuesday. If they were taking physical exams, they both would have flunked." http://www.time.com/time/business/article/0,8599,1882939,00.html "GM running on fumes, auditors warn" http://www.washingtonpost.com/wp-dyn/content/article/2009/03/05/AR2009030500526.html
@ Bridge2far We have a clueless buffoon in the White House. As opposed to the idiotic embarrassment you did have for a miserable 8 years or could have had (Palin)? (Happy to have this post purged along with Bridge's if necessary).