If you think GM is just a short drive from steering into bankruptcy, think again. This morning, while everyone says this company is on the verge of collapsing, a GM spokeswoman emphatically said "NO!"
The spokeswoman says, ""Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets, but bankruptcy protection is not an option GM is considering. Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers."
Will that stop the speculation about GM's future? Probably not.
As I have said all week, GM will not consider bankruptcy because it would devastate sales. On top of that, GM has the liquidity it needs for the foreseeable future and there are still other moves is could use to stay afloat.
- GM: Bankruptcy Not Option It's Considering
What GM needs to make it through this crisis is a thawing up of the credit markets. It would help dealers with financing, restore confidence in the markets and economy, and eventually convince buyers that GM is not going away.
The next 2 weeks will be crunch time for GM, but for now---they won't include a visit to bankruptcy court.
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