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Lost $6.9 billion in a quarter (http://money.cnn.com/2008/11/07/news/companies/gm/index.htm?postversion=2008110711) :eek:

http://www.cleanmpg.com/photos/data/501/GM_s_CEO_Rick_Wagoner.jpgChris Isidore - CNN Money – Nov. 7, 2008

The hubris of past years is coming to a head -- Ed.

New York - General Motors shook an already embattled auto industry Friday as it reported a huge loss that was much worse than expected and warned it is in danger of running out of cash in the coming months.

GM, the nation's largest automaker, reported it lost $4.2 billion, or $7.35 a share, excluding special items. That's up from the loss $1.6 billion or $2.86 a share it reported a year earlier and was far worse than the forecast of analysts surveyed by earnings tracker Thomson Reuters, which had forecast a loss of $3.70 a share.

But the most shocking news came in its statements about its cash position. GM said it had burned through $6.9 billion during the quarter and warned that it "will approach the minimum amount necessary to operate its business" during the current quarter.… http://money.cnn.com/2008/11/07/news/companies/gm/index.htm?postversion=2008110711

I better clarify: GM needs about 14B in cash for suppliers to keep the plants operating, etc. Around Jan 2009, GM will be at that point and could have to shut down plants because they can't pay the bills.

Is this the case or is this an exaggeration to get government help?

I'm guessing that the troubles pictured are mostly true, but also note that they are building the case to their employees for further belt tightening in order to stretch their cash. I'm glad I don't work there.

Not to sound cold-hearted, but the adage "you reap what you sow" comes to mind. Toyota and honda aren't seeking bailouts, even though sales for foreign automakers are down as well. The little 3 knew what the future would hold years ago, perhaps not sucha quick spike in fuel prices, but they knew it was coming. Why should we bail them out..again (in the case of Chrysler)?

If two or so million Americans were not dependent on the Detroit automakers, I might agree.

Instead, I'm angry with the said Americans dependent on the managers and UAW leaders that brought this mess on us.

I guess this is like being Lindsey Lohan's parents on a much bigger scale. :(

I suspect very real trouble. Considering the limits being put on companies (and more importantly, executives) on pay, benefits, and golden parachutes, I doubt any executive would call in a favor unless is was truly looking dire.

Lindsey Lohan's parents.....nice!

Put this another way:

They were losing $1.1 billion monthy...now it's $2.3 billion.

Translated into plain English, GM's cash pile will drop low enough that by January they will have to declare bankruptcy very soon.

What a CF this is. I'm not sure what it is they think will "turn this around". They really don't have much to offer except for trucks/SUVs. The Volt thing is taking way to long. That thing should be out this spring. I know it is a short time frame, but amazing things can happen when your survival is at stake. Maybe they should have tried to buy back the large format NiMH patents they sold to Texaco instead of insisting on Li-ion batteries. I sincerely hope they (big 3) can figure this out.

How about instead of asking the govt. for a loan they ask for a relaxation of the automotive crash/emmisions standards so they can get the European high MPG econoboxes to the states ASAP.

If GMs board really wanted to save money I would have been willing to wreck GM for a fraction of what they paid Rick Waggoner. :rolleyes:

Maybe they should have tried to buy back the large format NiMH patents they sold to Texaco instead of insisting on Li-ion batteries. Ha! In retrospect, out of all the idiotic decisions GM has made that one appears to be one of the most idiotic. Besides facilitating a road-ready Volt now, just think of the licensing revenues GM could be getting from all the other automakers -- who could also have working EVs on the road today.

http://articles.latimes.com/2008/jun/04/business/fi-gmpay4

Must be nice, getting payed more for failing, and at the same time laying off people, who are actually doing a good job. Guys like this, are why we need a higher tax on the wealthy. I would imagine the monthly expenses these guys run up, doing a bunch of BS, is enough to cover monthly factory expenses. The sad thing is, they're already making more money than 90% of this site will see in a lifetime, in just 1 year, and they're asking for a government handout. Talk about redistribution of wealth...

These CEO's essentially write their own paychecks. Why wouldn't they keep making more every year.

GM is still advertizing HORSEPOWER, not mpg. We should give them a bailout?????

Road & Track, December 2008, a four page adv. for THE 556 HP 2009 CTS-V CADILLAC. This adv cost them a lot of $$$.
"True, the CTS-V will do 0-60 in 3.9 seconds, but this isn't about setting records in a straight line. It's about setting the record straight. Introducing the all-new 556 hp 2009 Cadillac CTS-V."

We should give them a bailout?????

Ha! In retrospect, out of all the idiotic decisions GM has made that one appears to be one of the most idiotic. Besides facilitating a road-ready Volt now, just think of the licensing revenues GM could be getting from all the other automakers -- who could also have working EVs on the road today.

You know something that is laughable is (Texaco at the time of the patent sale) Chevron's Willyoujoinus campaign. What a load. If they really feel so compelled to help humanity they could license the rights to manufacture the large format NiMH packs.

The biggest problem with a bailout (loans) is that the government should only invest in something it's (probably) going to see a return on. I don't see GM recovering for a long long time. If the government gives them a loan they should kick out all the top management and put in government officials until GM gets its act together. It's far better for GM to go bankrupt now than for the government to loan them 20 billion and then have them go bankrupt 2 years from now.

GM is failing because they don't sell an "average joe" car. Where the demand now is for a simple 4 seater with good FE, and I'm sorry to say but Hondas and Toyotas are better buys for that kind of car. Everything GM does seems like it's extremely bureaucratic and maybe it's time for it to be broken down into smaller companies. It's lost flexibility and that's what's needed right now with changing car buying demands.

You know something that is laughable is (Texaco at the time of the patent sale) Chevron's Willyoujoinus campaign. What a load. If they really feel so compelled to help humanity they could license the rights to manufacture the large format NiMH packs.

Maybe the US Government should ARRANGE for this to happen. NOT building vehicles with high FE will hurt the big 3 and the US.

What good is the IP if it is being held hostage and not used?

Two years later: GM had a bailout and a regime change....lots of pain - lots of anger from taxpayers that often bought Ford in protest. For the first time since 2004, GM is making a profit as the Volt is about to be introduced.