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February 26, 2009
RIP GM
GM lost $10B in the last quarter and $31B for the last fiscal year. The $4 B government loan went in and out immediately to pay creditors and salary. The current quarter will be worse, with sales declining further. GM has a deficit of $13B in its pension plan. With a cash reserve of $14B at the end of its fiscal year, this means that the company has probably (given how accounting works) already eaten through its reserve. The company has to be on the verge of not having the cash to met payroll. Any more government loans will go in and out immediately to creditors and workers. RIP GM.
February 26, 2009 | Permalink
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Comments
wow that is not good.. no more Gov loans if its not going to help anything..well except pay workers which is good but if I were working for GM I would have started looking for another job months ago when the signs were all there..I would get out now..or your going down with a sinking ship and you have no one to blame but yourself.
Posted by: danielmolano | Mar 9, 2009 2:00:28 PM
