The ink is barely dry on the $13.4 billion in "loans" provided by the Bush administration at the end of 2008, but General Motors (NYSE: GM) is already talking about needing more. CEO Richard Wagoner says the company may look to secure additional government cheese in March -- earlier reports had suggested that GM believed the $13.4 billion would be enough to survive through 2009.
How does GM plan to demonstrate viability? It will need to secure broader concessions from the United Auto Workers union and, hilariously, try to convince bond holders to swap their debt for equity in one of the greater cash-burning machines in history. Good luck with that one!
Wagoner also said that GM is still looking to find a buyer for Saab. The company has denied problems in generating interest in the brand among potential buyers -- I'll believe someone is interested in buying Saab when there's a done deal. Similarly, GM has failed to generate any serious interest in Hummer, despite trying really, really hard to find a buyer.
GM's management has been extremely optimistic in terms of its "forward-looking statements," but so far it's all been bluster. Government officials should keep that in mind when GM brass shows up in March to demonstrate a plan for viability.











Reader Comments (Page 1 of 1)
1-11-2009 @ 9:29PM
Meggawhats said...
GM better forget the Chevy Volt at only 40
miles before recharge.Mini Cooper has a
all electric plug-in due out 2010 that gets between 120-150 miles before recharge and much cheaper than the Volt.
If the new battery technologies that some claim exist that are capable of rapid charging without damage to the battery,then scrap the gasoline engine and lets move on. Let the Middle East drink their oil.We need total independence
from OPEC and the oil speculators.
1-12-2009 @ 12:37AM
Bill said...
Surprised? So do we audit GM and discover where the $13.7B was spent?What do you think that they did with it?
1-12-2009 @ 1:28AM
Ed said...
When will the American car companies realize Americans are sick of paying for cars that are made with cheap parts. I've always owned American cars until now. My wife bought a Toyota, and I bought a Subaru. My last car a 2004 Dodge Neon cost me over $4000 in repairs in the last year. The transmission failed twice. I've talked to several people who've owned a Chrylers vehicle and they've had transmission problems as well. I feel bad for all the workers who've lost their jobs but, something has to change. It's time the American auto industry takes a hard look at the junk they've been producing. It's interesting that my first car a 1986 Chevy Celebrity lasted until it had 200,000 miles on it. Since then I have yet to get an American car to 100,000 miles before it needs major repairs! What has changed? Is it greed? Are corners being cut to save cost? Personally I suspect the Unions as well as management.
1-12-2009 @ 2:37AM
Dominick said...
Realistically, the automakers listened to public demand and tooled up for SUV and so did the Japanesse and Euopeans. Come economical meltdown and the gasoline gouge and you can't give away the ugly beasts.
The problem we have in industry is management.When Mazda was in trouble they did there trimming from the top, down. When they got to the janitor they didn't have to do any trimming. Copare the salaries of the CEO with that of the President of the U.S. How many good engineers could you get for the price of these guys, and hell of alot of productive workers!
As to Ed and his Neon and his transmisssioon problem. I will bet the transmission wasn't made here.
1-12-2009 @ 9:04AM
FINELY TUNED AND POLISHED said...
What level of uncertain conditions is the government in, if every citizen knows the Corp. America rhymes and reasons? It is quite sad that no one is willing to place a break in America's Gov. script. Each Corp. ask for monies or are "watched dogged" by REGULATORS. In other words, everyone knows the script or questions being asked every time by the regulators, not that the regulators have been laxed, they are hoping you will believe that, they just know already the questions. So if you are aware of this, you can inform them what they want to hear.
1-12-2009 @ 9:07AM
BBOB said...
YOU SHOULD TRY DOING MAINTANCE ON THEM ED... THE LAST 5 GMS I HAD ALL WENT OVER 250000 AND TWO OF THEM ARE STILL GOING WITH OVER 300000
1-12-2009 @ 3:57PM
jim said...
I have three GM vehicles...and I am
fast becoming "sick" of dealing with
the company!
Even Cadillac Customer Service calls
go to the Philippines...GMAC calls go to
South America or Philippines. Terrible
responses and supervisors just as
pathetic.
I am ready to change to a better car
company after three generations of
GM ("Gone Madoff"?).
1-12-2009 @ 11:59AM
Jim B said...
I own a Dodge Ram 350 Diesel, I bought it because I wanted durability and affordable fuel. I got nothing of the sort.
At 38,000 Miles the Universal joints went South, a 15 Dollar Item, this was covered under warranty,but to my surprise they don't replace just the U-Joint they replace the whole drive shaft at several hundred dollars... Guess what nobody in the USA Dodge parts division had a drive shaft, I had to wait just short of 4 months for the part from Dodge. (I repaired it myself in my driveway in about an hour) I let them replace the shaft when the parts arrived to protect my warranty, The point is they are waisting time and money in real time but the bean counters see it different on paper. They need to shake up the whole operations division before they are going to be able to cut cost in the real world where we live and find another planet for the bean counters and the CEO's
For the final kiss the Dealer who did the drive-shaft repair informed me that I needed an additional $4,000 dollars is non warranty repairs.
I forgot to mention that they also had to replace the front drive axles at the same time they did the drive shaft, Now that is Quality.
Ask me if I would consider a foreign auto maker the next time I purchase a new Auto.........
1-12-2009 @ 1:13PM
Duke said...
I wonder what kind of concessions Gettlefinger will concede. It will be a paltry amount with the Dems in power. GM should never have bought Hummer or Saab, and spent their money on R&D in addition to modernizing their factories. The UAW stays greedy and tries so hard to justify its high wages and pensions. That jobs bank has to go now. So what if the UAW workers have to sell their toys. They can make it. The rest of us just get by, so can they.
1-12-2009 @ 1:27PM
Zeek said...
New Chevy Volt costs what? $35,000, good lord is that expensive. That will not help sales and profits. The new Camaro? That will cost about $22,000, but still GM will not sell enough to make a turnaround and keep from going bankrupt. GM is done. This economy will not get any better with billions going to GM to pay those union wages and benefits along with operating costs just to stay just above water. There is something wrong with the government. Let GM and the big 3 go bankrupt. The bankruptcy judge will set aside some of the pension fund for warrenty repairs. Those on a pension will just have to make due like the steel workers, and airline workers did. The PBGC will take over and at least the pensioners will get something though it won't be in the thousands, more like a few hundred dollars.
1-12-2009 @ 3:27PM
Jpr said...
I need a Bail-Out whose there to help me. I own a small business with 6 employees and no one gives a dam let them fail and start over maybe next time they do it right. No job banks,No 100% health care,No sick days ,No sub, No exes at the top making millions in bonus and them kissing the unions asses to keep things equal. The only person that keeps getting screw in this country is the middle class. I keep hearing all the talk about it and the help we are going to get but nobodys doing the walk.
1-13-2009 @ 12:56AM
RICHARD said...
TIME TO LET THEM FILE FOR BANKRUPTCY AND START OVER SMALL.
1-21-2009 @ 2:15AM
carnymouse said...
i hate the media
First thing Gm has recieved 4 billion so far
The 5.4 billion is to be paid around January. So you can now shut up. Your becoming sick of GM cars? how so? A dealer is a franchise when you go to burger King and the teen behind the counter messes up your order is it Burger kings Fault? Really Health care is a problem? small world Gm has to pay that for its workers it tacked on to every car and truck sold. Also retirement of about 30 years worth of retired employees. Not to mention A gop that has a Ax to grind because of the U.A.W. Or what about all the stupid ideas about not drilling offshore and in Alaska. Surprise oil prices spike because some ones afraid of polar bear dying. Also if you dont like the General there is Ford and Chrysler. But im sure you rather give money to the jappanese and Germans who for most parts see Americans as worthless piles of Garbage.
1-22-2009 @ 4:10PM
john said...
Unless you know what your talking about you should not make comments about the union or GM. First the union got the wages in this country up, so the middle class could have a decent life. My dad worked when there was no union. His foreman said he was painting his house this weekend and if you were not there, come Monday you were fired. American autos are built no different than foreign autos. So if US autos are crap, so are foreign. There have the same suppliers and the same workers. Americans need to buy american, because it affects all of us. If it doesn't now, it will soon. The banks and other financial places are at the fault of this mess. Yes the american people are too. We lived above our means. The banks and credit card companies are there to tell us, sorry you cannot have that loan or credit, but instead they said sure. A guy making 30000 dollars has 100000 in open credit. Makes sense ???
God Bless..
1-24-2009 @ 1:33PM
Hedge said...
East Coast White Unity http://www.ecwu.org
1-25-2009 @ 3:20PM
Reformed Republican said...
I dont care what the people at Ford, GM and Chrysler or the UAW people say anymore. It's not relevant to me. Since 1993, I've owned two vehicles: Honda Civics. The first cost me @$11,000; the second cost $17,000 'cause I added a bunch of options. I ran the first for about 240,000 miles. It's not dead; I gave it to my kid and now it's got about 375,000 miles on it. In '02, I bought a new Civic. It's got 147,000 miles on it now and it runs like when I bought it. Both cars always got 35+MPG. Maintenance? Tires and oil. Why should I buy cars from arrogant, overpaid, non competitive guys?
2-09-2009 @ 2:14PM
babyblulac666 said...
It doesn't surprise me the GM CEO needs more money to keep it going...they've come out with so much garbage in the past 20 years I was shocked at how many cars they were moving until last year. All domestic vehicles are overpriced compared to the competition, and too many impatient people purchased these pieces of crap they couldn't afford. It's sad because its OUR cars that suck...American made cars have a good of a reputation as mass-produced Chinese products now. Made in America used to stand for something, until greed surpassed quality. When BMW was introduced to the market, they were too cheap and they created a standard. I don't own a BMW, but I think I can speak for most when I say I respect their philosophy.