More Videos
- Volt Drive: Great Ride, Interesting Interior and a Friendly Chirp
- Volvo Talks Show New Day Dawning for China
- Starting Car2Go - Smart Move for Daimler
- GM Cuts Losses—Plans Early Loan Repayment
- Ghosn's Bet: 10% of World Will Drive EV's in 10 Years
- Ford, Hyundai, Audi Gaining Interest
- Cadillac Converj Smart Extension of Volt
- Chrysler Makes Smart Call Staying Unplugged—For Now
- China Growth Shows GM Good Fortune
- Inflatable Seat Belts Aimed At Second Row Safety
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wave of Debt Payments Facing US Government
- HP Comes in As Expected; Is It Time to Buy?
- Prepare For Large Decline In Stocks, Next Year?
- Hewlett-Packard Profit Rises, Matches Guidance
- Paul: Audit the Fed
- The Social Media Gaming Threat
- Nov. 23: Unusual Volume Leaders
- Holiday Travel Outlook
- Cramer: Buy These Banks, If...
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
- More Consumers Giving 'Black Friday' the Cold Shoulder
- Prepare For Large Decline In Stocks, Next Year?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- Hewlett-Packard Earnings Rise, Match Guidance
- HP Comes in As Expected; Is It Time to Buy?
- Cramer: What Monday’s Housing Number Really Means
- Why the Dollar Will Likely Stay Weak for Some Time
- Bear, Lehman Execs Weren't Wiped Out by Crisis: Study
- How Real Estate Investors Skew Housing's Reality
RSS FEED
Behind The Wheel
Text Size 
 |
How bad is it at GM [GM
Loading...
()
] ? Today Chairman and CEO Rick Wagoner, along with UAW president Ron Gettlefinger and the CEO's from Ford [F
Loading...
()
] and Chrysler, will meet with house speaker Nancy Pelosi to request $25 Billion in bridge loans for the industry. Wagoner then flies back to Detroit where tomorrow, he will announce a big loss for the third quarter, a greater than expected cash burn rate, and steps the company is taking to conserve cash. In short, GM is wrestling with a major cash crunch.
So GM will announce on Friday that it's suspending product development for many future models in an effort to save money NOW! Those models close to rolling out, like the Chevy Camaro, and the Chevy Volt will not be put on hold. Wagoner will also announce other changes the company is taking with suppliers and dealers as it rushes to cut it's cash burn.
How much time does GM have? It's not going bankrupt this month or by the end of the year, but if it does not conserve its cash, and sales remain as depressed as they were in October, 2009 will be dicey.
To call this crisis one of the toughest GM has faced would not be an overstatement. Now more than ever, Cash is the key to GM's future.
Data is a real-time snapshot *Data is delayed at least 15 minutes