When you burn through $113 million every day, it seems ludicrous to say that the quarter turned out a little better than expected.
Equally disturbing is the fact few will seem phased by the fact spent $113 Million more than it took in every single day of the first quarter.
That is the strange world of General Motorsthese days.
We've gone from being shocked about the losses at GM to being almost resigned to seeing outrageously large numbers. That says as much about the wounded auto maker as it does about the sad state of the auto industry.
Yes, GM losing $5.9 Billion (excluding special charges) of $9.66 for the first quarter is slightly better than Wall Street expected. So is revenue of $22.4 Billion (down 47%). Even GM burning through $10.2 Billion in cash is a better (or should we say not as bad) as the company projected back in February. Still, the staggering losses and negative cash flow reinforce how weak GM has become and why the federal government is propping this company up with billions in aid.
This is why critics argue GM should not be aided at all by Uncle Sam. They believe GM should have been sent into bankruptcy a long time ago. As with Chrysler, I think that argument simplifies the ramifications of a GM bankruptcy. Heck, if these guys are in Chapter 11 at the end of this month, it will be a semi-controlled skid that will still carry the possibility of damaging the auto parts suppliers and manufacturing companies.