About a month after receiving bailout funds from taxpayers, General Motors Corporation (NYSE: GM) has slashed its sales estimates for 2009. The previous range had been 10.5 million to 12 million cars and trucks, but now GM says it is expecting just 10.5 million.
Doesn't that seem a little funny to you? It's always a big red flag when a company goes out and raises cash from investors and then slashes its projects once the money is in the bank. Has so much changed since GM received the $13.4 billion in loans?
GM will have to present its viability plan to lawmakers by March 31st, and is using the new sales estimate to demonstrate that it can return to profitability and repay the loans.
But will GM make the presentation to appease Congress and then turnaround and slash its estimates again? If history is any indication, it could do just that.
Bait and Switch: GM slashes sales forecast
Posted Jan 15th 2009 4:40PM by Zac Bissonnette
Filed under: General Motors (GM)
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Reader Comments (Page 1 of 1)
1-15-2009 @ 9:27PM
moonie said...
The money is in the GM coffer now too late for retreats at all it's a new world order now for all American auto makers. Can't go back now only forward with results only BOTTOM LINE that all, partys over, It's a revolution the US auto makers have to out produce foreign competition now if not the tax payers will be much more reluctant to add more hard earned tax payer moneys to all American auto makers money pits.
1-15-2009 @ 11:09PM
vince demarco said...
WHY SHOULD ANYONE BE SURPRISED?THE 13 BILLION WAS ONLY THE DOWN PAYMENT TO THE UAW AND THAT WILL BE FOLLOWED BY QUARTERLY PAYMENTS OF 20-25 BILLION FROM THE TREASURY.THE DEMOCRATS WISH TO STAY IN OFFICE AND A SMALL FEE OF 100 BILLION A YEAR WILL KEEP THEM THERE.THAT WAY,THEY HAVE SAVED 3 MILLION JOBS?