Forget about the old adage cash is king. Right now at GM, cash is critical to its very survival. And there is growing concern about how much GM has and is burning through.
How bad is it at GM ? Today Chairman and CEO Rick Wagoner, along with UAW president Ron Gettlefinger and the CEO's from Ford 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.