Tech & Biz

GM takes $25bn governmant grants and runs out of cash

by SOLARLIFE | November 7, 2008 at 02:45 pm

88 views | 4 Recommendations | 4 comments

GM take $25bn governmant grants and run out of cash

GM spend the $25bn aid, run out of cash

$25bn just used to fix holes in the financial system, not a dime for fuel efficent cars as promised. Forget this industry, no economy engine, just lost orders. Shares to go to Zero.

General Motors shook an already embattled auto industry Friday as it reported a huge quarterly loss that was much worse than expected and warned it is in danger of running out of cash in the coming months.

The nation's largest automaker reported that it lost $4.2 billion, or $7.35 a share, excluding special items. That's up from the loss $1.6 billion or $2.86 a share it reported a year earlier and was far worse than the forecast of analysts surveyed by earnings tracker Thomson Reuters, which had forecast a loss of $3.70 a share.

But the most shocking news came in its statements about its cash position. GM said it had burned through $6.9 billion during the quarter and warned that it "will approach the minimum amount necessary to operate its business" during

recommend Add a comment

moonwolf

at 15:25 on November 7th, 2008

A giant hole in the road into which the Taxpayers will pour money until they come to their senses and realize it is all in vain.

GM has known what's coming and has had two decades to develop super fuel efficient cars and to become a leader in the development of alternative energy vehicles. They chose to keep selling Hummers and gas gulping autos and jump off the cliff.

As in all businesses that fail to change with the market where they compete they should go bankrupt, and become an entry in the history books!

SOLARLIFE

at 10:26 on November 10th, 2008

moonwolf..GM..giant hole for taxpayers. GM lost Delco as the electronic producer for hybrids ? End of 100 YEARS car economy.

corbinse

at 21:01 on November 8th, 2008

Fuel efficiency ... "This is just my Opinion.. so take it as just that.." for companies to be forced to create Fuel efficiant or .. alternate fuels. what must happen? Well it does not look like it now with gas prices dropping but in the near future I think you will see them rise exponentialy .. this will be the only way GM Ford..ect.. will be "forced" to create the market niche for reall fuel efficiency. Taxes will make it unberable to step up to the pump and for these folks to stay in biz... they will have to adapt.