Tuesday, March 10, 2009

The End of GM

Makes one wonder why they are investing a billion in Brazil.

"GM auditors doubt automaker is viable" by The Washington Post | March 6, 2009

WASHINGTON - Auditors for General Motors yesterday said there is "substantial doubt" the struggling automaker will remain financially viable and able to continue operating, raising questions about whether the company will have to declare bankruptcy or can continue to qualify for Treasury Department loans.

The comments were part of a statement included in an annual report filed with the Securities and Exchange Commission.

"The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern," Deloitte & Touche wrote in the SEC report.

The automaker, which last week posted a $30.9 billion loss for the fourth quarter, and is struggling with plunging auto sales, now must convince Treasury it has a viable business in order to be able to receive additional federal loans.

The company said it is expecting to record a loss that would top $1 billion for its Saab unit, which it placed into bankruptcy protection in Sweden last month. GM said this week its sales slid 53 percent in February, compared with a year ago. In addition to the billions it has already received from the US government, the automaker has requested financial support from the governments of Canada, Germany, Britain, Sweden, and Thailand, where it has operations.

The arrogant greed is astonishing.

GM has submitted a restructuring plan to Treasury that pledged to cut 47,000 jobs worldwide this year and close 14 plants over the next few years. The company said it will focus on making "fewer, better" products. In yesterday's filing, GM said its future depends on successfully executing the restructuring plan.

As part of the plan, GM said it needs at least $9 billion more from the government to survive the next few years. If economic conditions and sales forecasts worsen, however, officials said last month that the amount of government funding that company would need could increase to $16 billion. --more--"


Let them DIE!!!