T Nation

The End of GM?

"Nov. 7 (Bloomberg) – General Motors Corp., seeking federal aid to avoid collapse, said it used $6.9 billion in cash in the third quarter and may fall below the minimum it needs to operate before the end of this year.

GM said it will be near its minimum threshold for operating cash for the remainder of 2008 and will be ``significantly short’’ of that level by the end of June without an improvement in market conditions, a major asset sale or access to new loans or cash support. GM has said it needs at least $11 billion in cash to pay its bills each month.

GM is making a pretty direct plea for help,'' said Pete Hastings, a fixed-income analyst at Morgan Keegan Inc. in Memphis, Tennessee.The message is, `we’ve done all the things we can do, and we need help.’ And if we don’t get help, fill in the blank.’’

Merger talks are being suspended, GM said. The company had been in discussions about a tie-up with Chrysler LLC, people familiar with the plans had said.

Chief Executive Officer Rick Wagoner and the CEOs of Ford Motor Co. and Chrysler met yesterday with U.S. House and Senate leaders as the automakers seek $50 billion in new government aid, a person familiar with the proposal said.

The third-quarter operating loss was $4.2 billion, or $7.35 a share, GM said today in a statement. Including a non-cash, $4.9 billion one-time gain related to unloading retiree medical bills, the biggest U.S. automaker had a net loss of $2.5 billion, compared with a $38.9 billion year-earlier loss on a tax-accounting charge."

Sad ending for a great company.

It needs to die so something can grow in its place.

They will blame the fat cats (and they certainly deserve some of it) but the extortion of the unions crippled it long ago.

Combine that with idiotic government regulations that favored using the SUV as a commuter vehicle which pushed GM to an evolutionary dead end and the end is near.

Looks like good time to buy a corvette!

Worthless POS muthafuckas hoping for a motherfucking bailout.

Not gonna happen, sons of bitches. Go make your motherfucking corvettes and LIVE in them.

Such a bad precedent to start bailing out any and every industry that doesn’t have a solid enough business plan to survive the bad times.

[quote]pat wrote:
Looks like good time to buy a corvette![/quote]

Buy two. You’ll need one for the spare parts.

It is a shame because GM’s products lately have been getting quite competitive.

America needs to keep it’s domestic auto makers alive because this is a crucial industry that has done much for America over the years.

Right after 9/11 when the economy was about to stall it was the Detroit automakers who came out with zero percent financing to sell cars and keep the economy going.

Detroit saved America. You didn’t see Toyota, Honda, Nissan, Mazda, Mercedes, BMW making big sacrifices to keep their American factories going, because they are not American companies.

It will be a huge loss for America if GM goes out of business. Those who think it would be a godd thing for GM to die are being very short sighted.

Clearly the fall of the auto industry is a result of housing bankruptcy fallout.

We don’t stand a chance with the majority opinion what it is.

Peter Schiff laughs at the other wannabe economists and tells them how it is:

[quote]LIFTICVSMAXIMVS wrote:

Peter Schiff laughs at the other wannabe economists and tells them how it is:

http://www.youtube.com/watch?v=E4sLx5O_3M0 [/quote]

Good link, I agree with him here.

HAHAHHAHAHAHAHAHAHAHAHAHAH! That was good, thanks. I needed that.

[quote]Sifu wrote:
It is a shame because GM’s products lately have been getting quite competitive.
[/quote]

[quote]Zap Branigan wrote:
It needs to die so something can grow in its place.

They will blame the fat cats (and they certainly deserve some of it) but the extortion of the unions crippled it long ago.

Combine that with idiotic government regulations that favored using the SUV as a commuter vehicle which pushed GM to an evolutionary dead end and the end is near.[/quote]

That about sums it up. Fat cat bonuses and outrageous union demands. Neither willing to give up anything, next!

government will never let gm fold.

C’mon, guys!

You must be losing it!

No “Obama Connection” to the fall of GM?

Mufasa

Nope. GM is going the way of old yeller, and anyone who works there will likely need to survive off dog shit when they’re through with everything, gven the state of the automotive industry. Ford is next in line, followed by Goodyear…will be nice to see motherfucking Wagoner out on the street living off food stamps, but that may never happen.
Do you think kirkorian will survive this?

[quote]toejam wrote:
government will never let gm fold.[/quote]

[quote]Zap Branigan wrote:
LIFTICVSMAXIMVS wrote:

Peter Schiff laughs at the other wannabe economists and tells them how it is:

Good link, I agree with him here.[/quote]

Peter Schiff nails it there, it is a tragedy that no one is listening to him, he makes total sense. I really hope this guy starts getting more traction in the MSM. People need to be listening to him.

I can’t feel sorry for these guys, although we are losing 1100 GM workers in my town.

No one bailed out the steel industry.

The home of the automotive era letting it’s auto industry die?

Hard to see it happening…

They let their steel industry die.

[quote]Gkhan wrote:
They let their steel industry die.[/quote]

by letting foreign steel into the country? Our mills were decades behind European and asian mills because there was no outside competition. They shouldn’t have been exempt from competing in the world market to begin with.

Why would you take money away from those who are succeeding, and give it to a company (or companies) that has proven it can’t? Shouldn’t it be reversed? Shouldn’t we want money to stay in the hand of efficient and successful people and companies?