Big Three Bailout Update: GMs Questionable Future
bailout bill GM, originally uploaded by Shmoomeema
GM announced their 2008 fourth quarter report, and many folks started to mourn the loss of a once great corporation. Their close to $10 billion crash ($9.6 billion to be exact) left a lot of questions towards any future they might have.
Yahoo! Finance broke that number down a bit further, which should really help to drive these numbers home. Every single day, GM is losing approximately $85 million, which translates to $3.5 million every hour, $58,333 every minute, and $972 every single second. Those are some pretty gruesome numbers for anyone’s standards!
This brings GMs loss totals for 2008 to $30.9 billion. In addition, reports suggest that GM is most likely facing another $14 billion loss for 2009, most of that taking place during the first quarter. The lack of demand for their vehicles, not to mention their excruciating operating overhead is going to take them awhile to get under control, although they are pleading with the government, among others, to give them a chance to get things under control.
This explains GMs recent request for the U.S. Government to fork over an additional $16.6 billion to keep them afloat for the next several months. Rumor has it that upon news of the fiscal year slaughter, staff members of the White House economic team have begun to source out funding for a Chapter 11 bankruptcy. Recent polls concerning the Big Three show that 70 percent of American’s don’t believe that the auto industry should receive anymore support from tax payers this year.
A scheduled meeting with U.S Treasury Secretary, Timothy Geithner, and White House economic adviser, Larry Summers, is set to take place with GMs Chief Executive, Rick Wagoner, to look at the dwindling options that are available at this point. Chrysler is most likely to follow suit, with Ford bringing up the rear. This is one time when it is actually good to be in last place!
Source: U.S. News
April 27th, 2009 at 6:39 pm
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